November 9, 2024

Tesla hits a $1 trillion market cap after the stock rallies 27% following Trump's election win

view original post

Tesla on Friday reached a trillion-dollar market valuation for the first time since April 2022.
Its stock surged 27% following Donald Trump’s election win, boosting Elon Musk’s net worth.
Wedbush notes Tesla has a competitive advantage if Trump gets rid of electric-vehicle subsidies.

Advertisement

Tesla hit a $1 trillion market valuation for the first time since April 2022.

The stock surged as much as 7% on Friday to an intraday peak of $319.44, with shares soaring 27% since Donald Trump was declared the winner of the US presidential election.

Tesla CEO Elon Musk was a huge backer of Trump’s campaign in its final few months, donating over $100 million to efforts to reelect him.

The massive gain in Tesla stock this week catapulted Musk to a net worth of about $300 billion, solidifying his position as the world’s richest person, according to Bloomberg data.

Advertisement

The Wedbush analyst Dan Ives said Trump’s win, while potentially negative for the broader electric-vehicle sector, could significantly benefit Tesla.

That’s because while federal EV rebates and tax incentives are likely to be withdrawn during Trump’s second term, Tesla is better suited than its competitors to navigate such a scenario.

“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the US market over the coming years,” Ives said in a note this week.

Significant deregulation under Trump could also fast-track Tesla’s Full Self-Driving platform to market. Tesla’s premium valuation has largely hinged on its progress in delivering a fully autonomous vehicle, so investors would most likely cheer any progress on that front.

Advertisement

Shares of Tesla are up 26% this year, in line with gains of the S&P 500 and the Nasdaq 100.

thebullishtraders.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of thebullishtraders.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of thebullishtraders.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and thebullishtraders.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.