Wedbush analyst Dan Ives on Monday raised his price target on Tesla Inc TSLA from $300 to $400, in the hope that Donald Trump winning the Presidential election will be a “gamechanger” for the EV giant spearheaded by billionaire Elon Musk.
What Happened: “…We believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years,” Ives said. “We estimate the AI/autonomous opportunity is worth $1 trillion alone for Tesla.”
Ives said last week that the biggest positive from a Trump win would be for Tesla and Musk.
“We believe a Trump win is a negative for the EV industry as the EV rebates/tax incentives get pulled, however for Tesla a huge positive for scale/price advantage,” Ives then said.
As per Ives, the absence of EV subsidies will give Tesla a clear advantage against other domestic EV makers while Trump’s proposal of imposing steep tariffs on EVs made in China will continue to keep Chinese EV makers out of the U.S. market.
Trump And Musk: Tesla CEO Elon Musk endorsed Trump in July and actively campaigned for the President-elect both offline in the swing state of Pennsylvania and online.
Trump, meanwhile, has expressed his intent to set up a government efficiency commission led by Musk if elected President. The commission will be tasked with conducting a complete financial and performance audit of the federal government and recommending reforms, Trump said in September.
Price Action: Tesla shares closed up 8.2% at $321.22 on Friday. The stock is up 29.3% year-to-date, according to data from Benzinga Pro.
The stock has been rallying since Trump’s landslide victory against Democratic Presidential candidate Kamala Harris and is up by over 30% in the past five days.
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