Elon Musk embraces former Republican President Donald Trump during a campaign rally at the Butler Farm Show trade fairgrounds on October 5, 2024 in Butler, Pennsylvania.
Anna Moneymaker | Getty Images
tesla The stock soared 6% on Monday, continuing its post-election bull run as President-elect Donald Trump, who works closely with CEO Elon Musk, begins to form his presidential cabinet.
Wedbush analysts reiterated their Outperform rating on the stock and added to their positive outlook after Tuesday’s results. Tesla recently regained a $1 trillion market cap after soaring nearly 30% last week.
Wedbush analysts say they have a $300 to $400 price target on Tesla because they believe a Trump victory will revolutionize Tesla and Musk’s self-driving and AI story over the next few years. We will raise it to .”
Since Trump’s decisive election victory, Musk’s wealth has soared to more than $300 billion in a matter of days, further cementing his status as the world’s richest man and since post-election trading began. It joined a wave of gains across the technology and crypto sectors.
It’s unclear whether Musk, who spent at least $130 million on Trump’s campaign, will have an official title in Trump’s second White House or whether he will influence the policy decisions of his aides. .
Either way, Musk could make billions in new government contracts with his company, on top of the $19 billion SpaceX has already won. Some or all of the 19 known ongoing federal lawsuits and investigations against his company may begin to wind down completely.
Analysts at Bank of America said last week that it is difficult to determine how Tesla would benefit from an increasingly close public relationship between Elon Musk and President Trump. , this will need to be monitored closely,” he said in a note, raising his price target for Tesla from $265 to $350. .
President Trump has previously said he may cut the $7,500 federal electric vehicle tax credit, which has historically helped boost sales of Tesla cars.
At one of his last campaign rallies, President Trump hinted that he might put Musk in charge of “streamlining government,” and two days earlier, Trump and Ukrainian President Volodymyr Zelenskiy had spoken. Musk was also present during the telephone conversation.
—CNBC’s Michael Bloom, Annie Palmer and Laura Kolodny contributed reporting.
