Tesla stock soars as markets reprice key 'Trump Trade' bet

Tesla, seen as a key beneficiary of the so-called 'Trump Trade' thanks in part to CEO Elon Musk, is set to open at the highest levels in more than a year.

Nov 6, 2024 - 19:30
 0  17
Tesla stock soars as markets reprice key 'Trump Trade' bet

Updated at 5:37 AM EDT

Tesla shares look set to open on the highest levels in additional than a year Wednesday following what appears to be a decisive victory for former President Donald Trump in the 2024 elections.

Elon Musk has been a vocal and high-profile supporter of the previous President's campaign, raising millions of dollars through his The U.S. PAC and appearing at key campaign rallies at some stage in the autumn months.

The Tesla (TSLA) CEO may perchance now be in-line for key role in the Trump administration, perchance heading what some have often is often called a 'government efficiency commission' aimed at loping hundreds of billions of spending from the Federal budget.

Trump also spoke in glowing tones at some point of an address to his supporters in Palm Coastline late Tuesday, calling him a "new famous person" in the Republican birthday celebration and a "super genius" that ought to be protected. He also praised Musk's effort on the campaign trail and his willingness to deploy the Starlink satellite internet service in North Carolina following Hurricane Helene.

“He’s a personality, he’s a special guy, he’s an outstanding genius,” Trump said. “We ought to always give protection to our geniuses, we don’t have that loads of them.”

A Trump administration is additionally likely to revamp the broader electric vehicle landscape by imposing stricter tariffs on cars made in a foreign u . s . and hunting down loads of the tax credits and rebates that has unpinned the profit potential for new market entrants almost like Ford Motor F and General Motors GM.

Tesla CEO Elon Musk has been undoubtedly a couple of of the foremost high-profile supporters on President Trump at some stage in the late stages of the 2024 election campaign.

The Washington Post/Getty Images

Tesla, nevertheless, with its large and established manufacturing facilities in the United States, may perchance provide the group with an edge over its domestic rivals, argues Wedbush analyst Dan Ives.

'Unmatched scale'

"Tesla has the scale and scope it truly is unmatched in the EV industry and this dynamic may perchance give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that will perchance continue to push away more cost effective Chinese EV players from flooding the U. S. market over the arriving years," he said.

Ives also sees a new Trump administration as potentially fast-tracking loads of the self-driving initiatives that Tesla is counting on to power its near-term growth should Republicans regain control of the House of Representatives.

"The self reliant fast tracking will be front and center for investors on this scenario as loads of the 2026/2027 goals for Tesla would perchance perchance be accelerated to remain heading in the appropriate direction with the China timeline for self reliant currently underway," he said.

Related: Analysts overhaul Tesla stock price target after earnings blowout

Musk told investors last month that he thinks the company will solve its current FSD challenges by the tip of next year, something he has said would perchance perchance be the foremost determinant for Tesla ultimate stock price.

"If we execute on our objectives, I believe we can, my prediction is Tesla will change into the foremost valuable company on earth and possibly by a long shot," Musk said.

More Wall Side road Analysts:

  • Analysts reboot Snap stock price target after earnings
  • Analysts reset Meta stock price target after earnings
  • Analysts update Reddit stock price target after earnings

Tesla also said its expects a "slight growth in vehicle deliveries" this year, following last year's record 1.Eight million tally, with Musk adding on the investor call that he sees the prospective for a 20% to 30 growth rate in 2025 "now no longer withstanding negative external events ... like some big war breaks out or rates of interest go sky high or something like that."

Tesla shares were last marked 15.1% higher in premarket trading to point a gap bell price of $289.37 each, the highest since July of last year and a move that will perchance peg the stock's 2024 gain at around 16.5%.

Related: Veteran fund manager sees world of pain coming for stocks

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow