Elon Musk hugs Republican presidential candidate and former President Donald Trump during a campaign rally at the Butler Farm Show fairgrounds on October 5, 2024 in Butler, Pennsylvania.
Anna Moneymaker | getty images
tesla Stocks surged about 8% on Monday as President-elect Trump, who is a close ally of CEO Elon Musk, began forming his presidential cabinet.
Wedbush analysts reiterated their “outperform” rating on the stock, joining their previous positive outlook Tuesday reacting to the results. Tesla recently regained $1 trillion in market capitalization after surging nearly 30% last week.
“We raised our price target on Tesla from $300 to $400 because we believe a Trump White House victory will change the landscape of Tesla and Musk’s autonomy and AI story in the coming years,” Wedbush analysts wrote.
Musk’s wealth surged past $300 billion in the days following Trump’s decisive election victory, further cementing his position as the world’s richest man and joining a wave of gains across the tech and cryptocurrency sectors since post-election trading began. I did it.
It is unclear whether Musk, who has spent at least $130 million on the Trump campaign, will receive an official title in a second Trump White House or whether he will have influence over policy decisions by his associates.
Either way, Musk could potentially earn billions of dollars through new government contracts for his company, in addition to the $19 billion SpaceX already has inked. Any or all of the 19 federal lawsuits and investigations currently underway against his company may begin to come to a halt entirely.
“It is difficult to determine whether the increasingly close public relationship between Elon Musk and President Trump could be beneficial to Tesla, but this should be monitored closely,” Bank of America analysts said in a note last week. The price was increased from $265 to $350. .
Trump previously said he could cut the $7,500 federal electric vehicle tax credit, which has historically helped boost sales of Tesla vehicles.
Trump suggested at one of his last campaign rallies that Musk could take on “government efficiency,” and two days ago Musk was present on Trump’s phone call with Ukrainian President Volodymyr Zelensky.
— CNBC’s Michael Bloom, Annie Palmer and Lora Kolodny contributed reporting.
