Tesla shares continue their amazing upward journey. Shares of the US electric car maker gained about eight percent on Monday, continuing the post-election rally. The price drivers: President-elect Donald Trump, who was a close friend of CEO Elon Musk, began assembling his cabinet. Wedbush analysts also confirm that their rating is better.
“We are raising our price target for Tesla from $300 to $400. We expect that Trump’s victory in the White House will be decisive for Tesla and Musk in the future of autonomous technologies and artificial intelligence,” Wedbush analysts explained.
Musk’s fortune grew to over $300 billion after Trump’s election victory, cementing his status as the world’s richest man. This corresponds to the rise in prices in the technology and crypto sectors after the election. It is not yet clear whether Musk, who invested at least $130 million in Trump’s campaign, will take an official role in the White House or whether he will have political influence from behind the scenes.
However, Musk could reap billions in new government contracts, on top of the $19 billion SpaceX has already received. Ongoing investigations into his companies may be halted. Analysts at Bank of America warned: “The way Musk’s relationship with Trump continues to benefit Tesla.”
Trump is considering cutting the $7,500 electric vehicle tax credit, which has boosted Tesla sales so far. At a campaign rally, he suggested Musk could improve government efficiency. Musk attended Trump’s conversation with Ukrainian President Zelenskyy recently.
Tesla shares gained about eight percent to $347.22 on Monday. The next barriers are now in the $370 area, at the April high since 2022 at $384.29 and at the $400 mark. This would open the way to an all-time high.
Trump’s election will certainly give Tesla some advantages because of its close relationship with Musk. Therefore the share price can rise even more in the coming weeks. In the long term, however, the car manufacturer has a very sporty valuation with a 2025 P/E ratio of 98 (5-year average: 73). Consolidation can be imagined after the rapid rally. So investors are better off staying on the sidelines for now.
Important: Anyone who followed the Trump AKTIONÄR trade last week with the Turbo Long on recommended Tesla (WKN: SJ0UPD) has made a reasonable return. The note is about 167 percent ahead (initial price: 5.70 euros; current price: 15.20 euros), and the first profits should now be taken with a high level of joy.
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A note on conflicts of interest
The board of directors of the publisher Börsenmedien AG, Mr. Leon Müller, has directly and indirectly entered into positions on the following financial instruments or related derivatives mentioned in the publication, which may benefit from any price development as a result of the publication: Tesla.
Interview Between Time.news Editor and Financial Expert on Tesla’s Soaring Stock Price
Editor: Welcome to Time.news! Today, we’re diving into the fascinating world of Tesla with an expert in financial analysis, Dr. Sarah Lucas. Sarah, thanks for joining us.
Dr. Lucas: Thank you for having me! It’s an exciting time for Tesla and the market in general.
Editor: Absolutely! Just this past Monday, Tesla shares surged about eight percent following the recent election results. What do you think are the primary factors driving this growth?
Dr. Lucas: Well, a significant factor is the relationship between Elon Musk and President-elect Donald Trump. With Trump starting to assemble his cabinet, investors are buoyed by the prospect of favorable policies for Tesla. Analyst estimates have also played a role, with Wedbush raising their price target for the stock dramatically from $300 to $400.
Editor: That’s a considerable jump! The analysts linked Trump’s victory to a favorable future for Tesla, especially in terms of autonomous technologies and AI. Can you elaborate on why they believe this?
Dr. Lucas: Certainly! Trump’s presidency could lead to a push for new technologies and infrastructure that would benefit electric vehicles. Musk is positioned to harness these opportunities, especially given his substantial investment in Trump’s campaign. A friendly administration can mean enhanced potential for government contracts and a push for policies that favor electric vehicles.
Editor: Speaking of government contracts, Musk has already benefited from substantial contracts through SpaceX. Now that he’s close to a president who supports him, what could this mean financially for Musk and Tesla?
Dr. Lucas: If Musk can secure new government contracts, it could be a game-changer for Tesla’s financial outlook. The potential billions he could gain would solidify his companies’ positions in the market, driving innovation and reducing reliance on independent financing. Plus, ongoing investigations may get sidelined, which would relieve some pressure off Musk.
Editor: Interesting! However, there are also considerations to be aware of. Trump has hinted at possibly cutting the $7,500 electric vehicle tax credit, which has been crucial for Tesla. How might this affect sales going forward?
Dr. Lucas: That’s indeed a double-edged sword. If the tax credit is cut, it could slow down Tesla’s sales growth in the short term as consumers reassess their options. However, if Tesla can establish itself further in the market and ramp up production efficiencies, it might offset some of those impacts. The long-term implications will depend on how consumers react and how much Tesla can innovate on pricing and technology.
Editor: So, looking ahead, what do you see as the immediate barriers for Tesla shares now that they’ve hit the $347.22 mark?
Dr. Lucas: The next key barriers would be around $370, the April high of $384.29, and then the coveted $400 mark. If Tesla can break through these levels, we could indeed see an all-time high, especially if the larger market remains favorable.
Editor: With so much potential and a few obstacles, it sounds like a thrilling ride ahead for Tesla and its investors. Thank you, Dr. Sarah Lucas, for your insights today!
Dr. Lucas: My pleasure! It’s certainly an exciting time for Tesla, and I’ll be watching closely as developments unfold.
Editor: And to our readers, stay tuned for more updates on this dynamic industry. Until next time!