Tesla shares rose by almost 6% on Wednesday, surpassing their prior record reached in 2021, as investors reacted to Elon Musk’s strong support for Donald Trump’s election victory. The stock is now up about 71% this year, with nearly all gains occurring since Trump’s election last month.
Analysts attribute the rally to Musk’s “authentic” support for Trump, which they say has doubled Tesla’s pool of enthusiasts and lifted credibility for a demand inflection. The billionaire has been advising Trump on federal agencies, regulations, and budget items he wants to eliminate or reduce.
Tesla’s market value has grown by 71% in 2024, with most gains coming since Trump’s election. Musk is set to lead the Trump administration’s “Department of Government Efficiency,” giving him sway over federal agency budgets and staffing. This new role could pave the way for a “federal approval process” for autonomous vehicles.
Analysts at Goldman Sachs have boosted their price target on Tesla, citing its AI opportunity and forward-looking approach. Morgan Stanley and Bank of America have also issued bullish reports recently. The stock surged to an all-time high of $424.77, surpassing its previous peak of $409.97 in 2021.
Source: https://www.cnbc.com/2024/12/11/tesla-reaches-record-boosted-by-64percent-pop-since-trump-election-victory.html