Elon Musk hugs Republican presidential candidate and former President Donald Trump during a campaign rally at the Butler Farm Show playground in Butler, Pennsylvania, on October 5, 2024.
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Tesla Shares rose 8% on Monday, continuing a post-election rally as President-elect Trump worked closely with Chief Executive Elon Musk to begin assembling a presidential cabinet.
Wedbush analysts reiterated an “outperform” rating on the stock, adding to an earlier upbeat outlook on Tuesday’s results. Tesla recently returned to a $1 trillion market cap after surging nearly 30% last week.
Wedbush analysts wrote: “We raise our Tesla price target to $400 from $300 as we believe a Trump White House will change the game for Tesla and Musk’s autonomous driving and artificial intelligence story over the next few years. rule.
Musk’s fortune has soared to more than $300 billion in the days since Trump’s decisive election victory, further cementing his status as the world’s richest man and joining a rising tide in the technology and cryptocurrency sectors since post-election trading began .
It’s unclear whether Musk, who has spent at least $130 million on Trump’s campaign, will have an official title in Trump’s second White House or influence policy decisions among his inner circle.
Regardless, Musk is likely to earn billions more from new government contracts with his company, in addition to the $19 billion in contracts SpaceX has already secured. Some or all of the 19 known ongoing federal lawsuits and investigations against his company may begin to wind down entirely.
“It’s difficult to tell what benefit Elon Musk’s growing public relationship with President Trump will bring to Tesla, but it’s something to watch closely,” analysts at Bank of America wrote in a note last week. Tesla’s price target was raised to $350 from $265.
Trump has previously said he may cut the federal $7,500 electric vehicle tax credit that has historically helped boost sales of Tesla vehicles.
At his final campaign rally, Trump suggested putting Musk in charge of “government efficiency,” two days after he attended a phone call with Ukrainian President Volodymyr Zelensky.
— CNBC’s Michael Bloom, Anne Palmer and Lola Kolodny contributed reporting.
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