Tesla's (TSLA, Financial) stock price soared nearly 9% to close at $350, pushing its market valuation past $1.1 trillion. This surge not only follows the U.S. election results but also bolsters CEO Elon Musk's wealth to a new high, reaffirming his status as the world's richest person. According to the Bloomberg Billionaires Index, Musk's net worth reached $335 billion, jumping $20.8 billion overnight and increasing by $105 billion this year alone. Musk's fortune stands about $107 billion more than Amazon founder Jeff Bezos, making him the only individual with a net worth surpassing $300 billion.
Wedbush Securities analysts reiterated their "outperform" rating on Tesla (TSLA, Financial), joining other analysts with an optimistic outlook for the company's upcoming earnings report. They raised their price target for Tesla from $300 to $400, citing expectations that the Trump administration's policies could positively impact Tesla's future in autonomous driving and artificial intelligence.
While it's unclear whether Elon Musk, who spent at least $130 million on Trump's campaign, will gain an official role in a potential second Trump administration, he stands to benefit from new government contracts which could bring billions in revenue. SpaceX, Musk's other venture, has already secured $19 billion in contracts. Additionally, some or all of the 19 federal lawsuits and investigations against his companies might conclude favorably under the new administration.
Bank of America analysts, in a recent report, increased Tesla's (TSLA, Financial) target share price from $265 to $350. They emphasized the importance of monitoring Musk's growing public relationship with President Trump and its potential implications for Tesla.
