Elon Musk-led Tesla is up for a major overhaul as Trump takes over the reins in the United States. The current election saw Musk-Trump camaraderie on a grand scale, with the Tesla chief pouring nearly $130 billion out of his pocket to help Trump ace the election game. With Trump back in the game, this camaraderie now seeks a higher purpose, with Musk potentially taking over a key cabinet role in Trump’s administration. If this happens, Tesla stocks could soar to new highs, as the news of Trump’s win alone helped TSLA gain 13% in profits.
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Tesla Stocks Are About To Breach New Highs: Analyst Says
The Tesla stocks are trending today, especially after Trump’s iconic US election win. Tesla rallied on Monday, noting a $230 billion boost in market valuation last week. Per the street, Tesla has been a prime beneficiary of Trump’s campaign. At the same time, if Musk assumes a cabinet role in Trump’s government, which the Tesla chief is keenly interested in, it could catapult TSLA stocks to claim new highs, possibly helping the firm in many ways.
Musk has expressed his desire to lead a government efficiency domain, DOGE, which may reportedly involve budgeting and financing duties. His role may also extend to policy shaping and amendments, which may pave the way for sectoral overhauls, contributing to Tesla’s stock surge.
D.O.G.E will fix it 🪓
— Elon Musk (@elonmusk) October 15, 2024
“The stakes were high after Musk spent more than $130 million to help elect Donald Trump and other Republicans this election cycle, according to filings… Depending on the outcome of the House, we also see risks to current electric vehicle tax credits from changes to existing tax legislation, which we think will widen Tesla’s competitive moat by making competing EV models even more uneconomic, as we believe Tesla is the only profitable manufacturer of EVs,” said CFRA analyst Garrett Nelson, as quoted by the street.
Trump To Initiate Sectoral Overhauls?
The outlet shared that Trump’s leadership may transform the electric car domain by imposing strict tariffs on cars made abroad. This could lead to a demand surge in US-made cars, helping Tesla ace the long game. The analyst cited a price target of $100 to $400 for TSLA that the firm may achieve within the next few years.
“In essence Musk made a strategic and big bet on a Trump White House win. That will be known as a ‘bet for the ages’ for Tesla bulls. As now Tesla & Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead.” Said Ives. The analyst lifted his price target on Tesla by $100 to $400 a share in a note published Monday.
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The Stock TipRanks Forecast
According to TipRanks, TSLA’s stock target is $310, which it may achieve in the next 12 months.
“The average price target for Tesla is $207.83. This is based on 35 Wall Street analysts’ 12-month price targets issued in the past 3 months. The highest analyst price target is $310.00; the lowest forecast is $24.86. The average price target represents a -40.62% decrease from the current price of $350. Tesla’s analyst rating consensus is a hold. This is based on the ratings of 35 Wall Street analysts.”
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