Since the U.S. election, Tesla (TSLA, Financial) has seen its stock price soar by more than 40%. Analysts from Wedbush Securities, particularly Dan Ives, attribute this surge to President-elect Trump's victory, which they believe is a crucial catalyst for advancements in artificial intelligence and autonomous driving.
Ives has increased Tesla's target stock price from $300 to $400, stating that Trump's win represents a "game changer" for the electric vehicle giant. He believes Tesla is one of the most undervalued AI brands in the market, with potential growth in its focus on autonomous driving and AI adding up to $1 trillion in valuation. This could further boost the company's stock by 20% to 30%.
Ives also highlights Elon Musk's potential role as a strategic advisor to Trump, which could significantly benefit Tesla, especially in dealing with regulatory challenges more effectively. Ives mentioned that Musk would have a "major seat at the table" in negotiations, and Trump's victory has altered the landscape for Musk, Tesla, autonomous driving, and Full Self-Driving (FSD) technology.
Despite these developments, Ives warns that Tesla will still face hurdles across various states, and the path forward won't be completely smooth. However, with Trump set to enter the White House, the situation has changed dramatically compared to just a week ago.
Since Trump's election, Tesla's market capitalization has skyrocketed by over $300 billion, while Musk's personal wealth has surged by more than $70 billion, reaching a total of $335 billion.
