On Friday, Tesla Incorporated stocks soared as the recent presidential victory of Republican Donald Trump sparked growing optimism.
The company’s stock price climbed by 8.19% to $321.22 per piece on November 08’s Asian afternoon session. More importantly, it is anticipated to leap further by 6.84% to $343.19 a share in today’s pre-market trading.
On top of that, the automotive corporation rallied by nearly 29.00% last week, while recording a 30.00% increase year-to-date.
In line with this, investors at Tesla believe the return of Trump to the White House will benefit the company. This is prompted by the president-elect’s alliance with the car manufacturer’s founder Elon Musk.
Based on reports, Musk contributed at least $130.00 million in support of his presidential campaign throughout the United States election.
More concretely, the victory of Trump allowed Tesla to achieve $1.00 trillion in market cap. For this reason, the designer of electric vehicles joined tech giants in the trillion mark, including Nvidia, Amazon, Apple, and more.
Moreover, analysts reveal that the new administration could ease regulations for the automotive company. This follows the previous statement of Trump that he might slash the federal $7,500.00 electric vehicle tax credit.
Furthermore, Musk stressed that he expects 20.00% to 30.00% growth for Tesla next year.
BofA Increases Price Target for Tesla
The Bank of America (BofA) enhanced its price target for Tesla amid analysts’ bullish sentiments on the company.
According to the reports, the financial institution boosted the target value to $350.00 from the previous $265.00 data.
In connection, analysts at the BofA cited the possibility of lax regulation, which could expand the growth prospects of the robotaxi from Tesla. They added that Musk would find it easier to launch the cybercab next year with the new administration’s support.
At the same time, the approval of the national standard for self-driving vehicles and higher tariffs on Chinese imports will benefit the American manufacturer.
