Tesla’s stock surged again on Monday, continuing its strong post-election rally, fueled partly by CEO Elon Musk’s alliance with President-elect Donald Trump, whose policies are seen as favorable for the electric car maker.
Since Election Day, Tesla has seen its market value soar by approximately $300 billion to $1.124 trillion, surpassing the combined market capitalization of Toyota and General Motors, two of the most valuable car companies in the world. The share price of Tesla has risen about 40% from last Tuesday as investors jumped on the EV maker after Trump won the election.
Tesla rose nearly 9% on Monday, November 12, 2024, to settle at $350 per share. The after-hour trading also saw a 2.2% gain. Other assets closely aligned to Trump’s policies, including bitcoin and stock indexes like the S&P 500, also experienced significant gains.
Wedbush analyst Dan Ives forecasts that Tesla’s stock price could rise by another 20%, reaching $400 per share, driven by Trump’s regulatory policies that favor the company’s expansion and accelerate the development of self-driving car technology. Ives also suggests that Musk’s personal ties to Trump might provide an opportunity for him to shape discussions on U.S. tariffs imposed on Chinese goods.
Since endorsing Trump in July, Musk and the president have become closely linked, both personally and politically. Despite speculation, Musk has confirmed he will not step back from his role at Tesla, even if offered a position in the Trump administration.
Regarding China, which accounts for a third of Tesla’s sales, Ives expects that even if China retaliates against U.S. trade policies, Tesla will receive special exceptions that will allow the company to continue thriving.
