In a somewhat unexpected turn of events, not only did both President-Elect Donald Trump and Tesla Motors (NASDAQ: TSLA) make major comebacks in 2024, but the two also proved surprisingly interlinked – one with a return to office, the other with a stock price resurgence.
As Trump’s victory odds were improved once Elon Musk endorsed the Republican – and, possibly, once he made a contentious offer of $1 million per day to Pennsylvania voters – so did TSLA’s share price explode once the former president was re-elected.
Analysts at Bank of America (NYSE: BAC) – the latest to revise their estimates at press time on November 7 – also estimated that Donald Trump will continue having a positive impact on Tesla stock.
Bank of America offers bullish revision of Tesla stock price target
Specifically, they reiterated their ‘buy’ rating for the electric vehicle (EV) maker’s shares while upgrading the TSLA stock price target from $265 to the new Street high at $350 – from a 9.46% downside from the press time price of $292.69 to a 19.58% upside.
According to BofA, the Trump administration will lessen Tesla’s regulatory burden – particularly regarding the’ full-self-driving’ (FSD) technology – and Elon Musk’s likely role in the administration would help him promote his vision for regulating self-driving EVs.
Ahead of the election, Finbold estimated that, despite Tesla potentially facing headwinds due to the Republicans’ lack of willingness to push a green transition actively, the EV maker would likely benefit from Musk’s position in the government and the associated visibility, as well as from the likely deregulation.
Another recent revision of the outlook for Tesla shares also demonstrates the unexpected nature of the turnaround.
Before the election, Wedbush’s Dan Ives predicted that a Harris victory would be better for big tech and estimated Tesla, Apple (NASDAQ: AAPL), and Nvidia (NASDAQ: NVDA) are likely to face strong headwinds should Donald Trump re-enter the White House.
After the election, Ives reassessed his position and opined that thanks primarily to artificial intelligence (AI) and FSD, Tesla is poised to reach a $1 trillion valuation under the upcoming Republican administration.
Tesla stock price rally
Whatever doubts preceded the election, the recent revisions appear only logical once the performance of TSLA stock in the wake of Donald Trump’s victory is considered.
Indeed, the majority of Tesla shares’ remarkable 16.69% 5-day rally to today’s TSLA price of $292.69 took place on Wednesday, November 6, shortly after the election was called.
The surge also proved strong enough for the EV maker to not only flip into the green in the year-to-date (YTD) chart but also to stand 17.71% above its price at the start of 2024.
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