Tesla shares surge, extending post-election rally

Investing.com - Shares in Tesla (NASDAQ:TSLA ) jumped by more than 5% in recent US trading on Monday, adding to its post-election 26% rally seen last week. 

The stock spiked by 8.2% on Friday, pushing Tesla's market valuation above $1 trillion, fueled by wagers that the company and its Chief Executive Elon Musk would be major beneficiaries of Trump's second four-year term in the White House.

Musk had been an outspoken backer of Trump during the campaign, lauding the former president at events and contributing over $130 million to his re-election bid. Trump, for his part, has praised Musk's talents as a businessman and suggested he could play a role as "Secretary of Cost-Cutting" in the new administration.

Prior to the election last week, which Trump won handily on a policy platform that included deep corporate tax cuts and looser regulation, Tesla's shares had risen by only around 1% so far this year. By the end of Friday, they had gained around 30% during that period.

Tesla's market cap previously crossed the $1 trillion threshold in 2021. It is now back among a group of megacap firms that includes artificial intelligence-chipmaker Nvidia (NASDAQ:NVDA ), software titan Microsoft (NASDAQ:MSFT ) and Google-parent Alphabet (NASDAQ:GOOGL ).

Speaking to analysts after Tesla's last quarterly earnings, Musk suggested he could use his influence in the Trump administration to push for a "federal approval process for autonomous vehicles." Musk has argued that the current process, which is handled by individual states, presents a regulatory hurdle for Tesla. The firm has recently targeted autonomous driving as a new growth engine.

On Monday, analysts at Wedbush led by Daniel Ives raised their price target for Tesla to $400 from $300 and maintained their "Outperform" rating of the stock.

"[W]e believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years," Ives wrote.

"We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around [full self driving]/autonomous clears significantly under a new Trump era."

(Scott Kanowsky contributed to this story)

Source: Investing.com

Последние публикации
Beirut bombing victims' $1.68 billion Iran judgment overturned by US appeals court
13.11.2024 - 19:00
Baltimore wins $266 million in opioid case against distributors
13.11.2024 - 19:00
Pentagon buys two new types of drones under Replicator initiative
13.11.2024 - 19:00
Germany stocks lower at close of trade; DAX down 0.30%
13.11.2024 - 19:00
Belgium stocks higher at close of trade; BEL 20 up 0.18%
13.11.2024 - 19:00
Portugal stocks lower at close of trade; PSI down 0.60%
13.11.2024 - 19:00
Netherlands stocks lower at close of trade; AEX down 0.26%
13.11.2024 - 19:00
Italy stocks higher at close of trade; Investing.com Italy 40 up 0.26%
13.11.2024 - 19:00
Sweden stocks lower at close of trade; OMX Stockholm 30 down 0.07%
13.11.2024 - 19:00
India's Adani Group to invest $10 billion in US energy following Trump win
13.11.2024 - 19:00
California's only nuclear plant to use AI to help comply with new licensing challenges
13.11.2024 - 19:00
U.K. stocks higher at close of trade; Investing.com United Kingdom 100 up 0.02%
13.11.2024 - 19:00
Factbox-US executives weigh risks from proposed Trump tariffs
13.11.2024 - 19:00
CoreWeave closes $650 million secondary sale as AI startups lure investors
13.11.2024 - 19:00
Oppenheimer initiates coverage of these 5 storage & infrastructure stocks
13.11.2024 - 19:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?