Elon Musk embraces former Republican President Donald Trump during a campaign rally at the Butler Farm Show fairgrounds in Butler, Pennsylvania, on October 5, 2024.
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Tesla Stocks rose 6% on Monday, extending their post-election rally as President-elect Donald Trump, closely aligned with CEO Elon Musk, begins assembling his presidential cabinet.
Analysts at Wedbush reiterated their outperform rating on the stock, joining a previous sunny outlook in response to Tuesday's results. Tesla recently regained its trillion-dollar market cap after rising nearly 30% last week.
“We are raising our price target on Tesla to $400 from $300 because we believe a Trump White House win will be a game-changer in the self-driving and AI story for Tesla and Musk over the coming years,” Wedbush analysts wrote.
Musk's fortune surpassed $300 billion in the days after Trump's decisive election victory, cementing his position as the world's richest man and joining a wave of gains across the technology and cryptocurrency sector since post-election trading began.
It is unclear whether Musk, who has spent at least $130 million on Trump's campaign, will receive an official title in Trump's second White House or whether he will influence policy decisions from his inner circle.
Either way, Musk is expected to earn billions from new government contracts with his companies, on top of the $19 billion SpaceX has already secured. Some or all of the 19 known federal lawsuits and investigations underway into his companies may begin to wind down completely.
“It is difficult to judge how Elon Musk's increasingly close public relationship with President Trump could benefit Tesla, but should be watched closely,” Bank of America analysts wrote in a note last week, raising their price target for Tesla from $265. To $350. .
Trump has previously said he might cut the $7,500 federal electric vehicle tax credit, and such credits have historically helped boost Tesla car sales.
At one of his recent campaign rallies, Trump suggested that Musk could be put in charge of “government efficiency,” and he was present in Trump's phone call with Ukrainian President Volodymyr Zelensky two days ago.
— CNBC's Michael Bloom, Annie Palmer and Laura Kolodny contributed reporting.
