Tesla’s stock is seeing a massive surge, with its market cap now over $1 trillion after this week. This rise comes as investors anticipate potential support for Tesla under Donald Trump’s upcoming presidential term, following his recent election win.
Tesla CEO Elon Musk has been a significant supporter of Trump’s campaign, contributing over $130 million to his re-election efforts. In Trump’s victory speech, he praised Musk as a “super genius” for his accomplishments, especially with SpaceX and Starlink.
Experts are saying that Tesla’s boost in value is no coincidence. Daniel Ives, managing director at Wedbush, believes Tesla’s self-driving technology is about to advance rapidly, potentially adding a trillion dollars in value to the company.
"Autonomous is going to get fast-tracked in our opinion, and that is significant," Wedbush managing director @DivesTech says on $TSLA. "That's worth $1 trillion alone in terms of the AI piece to Tesla, and that's why for Musk, the bet on Trump, it's a poker move for the ages." pic.twitter.com/U3rMjisDSE
— Yahoo Finance (@YahooFinance) November 8, 2024
“Autonomous is going to get fast-tracked in our opinion, and that is significant,” Ives said to Yahoo! Finance. “That’s worth $1 trillion alone in terms of the AI piece to Tesla, and that’s why for Musk, the bet on Trump, it’s a poker move for the ages.”
Gene Munster, a market analyst, sees Tesla’s recent growth as more than hype. “$TSLA up 44% over the last 12 trading days, compared to the Nasdaq up 4%,” Munster said on X, adding, “This is more than just a meme stock. The accelerating delivery growth next year…and the long-term opportunity around autonomy will power the fundamentals that should lead to further price appreciation.”
Meanwhile, Musk’s role in the new administration could go beyond just being a CEO. Trump has floated the idea of Musk heading a new “Department of Government Efficiency,” (D.O.G.E. for short, like the crypto memecoin) focused on trimming $2 trillion from federal spending. Buckle up, folks, further rise looks on the horizon.