Tesla’s stock has taken to the skies like one of Elon Musk’s rockets, soaring another 10% on Monday and rekindling memories of its 2022 highs. The electric vehicle behemoth now boasts a market cap that’s comfortably over $1 trillion, thanks to a surge of optimism around how the company might fare in a Trump-led White House.
The folks over at Wedbush are particularly bullish, having upped their price target on Tesla (TSLA) from $300 to $400. Analyst Dan Ives and his team believe that this administration shift could be a “gamechanger” for Tesla, especially in the realms of autonomous driving and artificial intelligence. They’ve pegged the potential value of these advancements at a cool $1 trillion, suggesting that the regulatory environment under Trump could become quite welcoming for these innovative technologies.
Elon Musk, Tesla’s captain who also fancies himself as a bit of a cosmic visionary, has been vocally supportive of Trump, even serving as a campaign surrogate. This alignment seems to be paying dividends, literally, as Tesla’s stock has rocketed nearly 45% since the election. On Friday, it hit its highest closing price in over two years, propelling its market value past the trillion-dollar mark yet again, proving that Tesla is not just another car company but a tech titan in its own right.
However, not everyone’s enjoying the ride. Hedge funds betting against Tesla have found themselves in a financial black hole, with losses amounting to $8.72 billion since November 4, according to S3 Partners. It turns out, betting against Tesla in this political climate is like trying to outsmart the Infinite Improbability Drive; it’s not just improbable, it’s financially disastrous.
Tesla’s ascent has been remarkable, especially when you consider its previous lag behind the S&P 500 (SPX) and its “Magnificent Seven” counterparts this year. But with the winds of policy change blowing in its favor, Tesla seems poised to, well, keep on trucking—or rather, keep on driving autonomously towards a future where the roads are paved with AI and electric dreams.
Price Action: As of writing, Tesla shares are up $21.88, or 7.25%, to $340.73. Day Range: $336.51 – $358.64.
Reference: YF
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