Tesla boss Elon Musk’s closeness to US President-elect Donald Trump has caused Tesla shares to skyrocket in recent weeks. Now a well-respected analyst has significantly increased his price target for the NASDAQ stock.
• Tesla shares have jumped since Trump’s election victory
• Musk’s closeness to Trump is optimistic
• Analyst drastically raises price target
Elon Musk massively supported Donald Trump during his election campaign. Investors are now betting that this proximity to the US President-elect will, among other things, be reflected in a reduction in burdensome federal regulations for self-driving cars. Tesla’s Full Self-Driving technology (FSD), based on advanced algorithms and sensors, is a central part of the company’s strategy. The US company wants to launch a robotaxi service as early as 2025, which could further boost demand for Tesla’s vehicles.
Tesla uses AI-based data processing to teach its vehicles to drive independently. Although FSD can already take over the driving most of the time, it still needs to be constantly monitored by a human. However, the Tesla CEO is convinced that FSD will be better than human drivers by early 2025.
Analyst raises price target
Dan Ives, analyst at Wedbush Securities, is also optimistic and rates Tesla shares as a “buy”. In addition, the long-time Tesla bull raised his price target on Sunday from the original $400 to $515, reports “MarketWatch”. In a “bull case,” the analyst sees Tesla shares even rising to $650.
In Ives’ opinion, Donald Trump’s second term will be a “total game-changer for autonomous and AI history” for Tesla and Musk in the coming years. The analyst further wrote in his report: “We believe the march to a $2 trillion valuation for Tesla over the next 12 to 18 months has now begun.”
For comparison: Tesla is currently worth $1.4 trillion on the stock market. Ives’ new price target currently values the group at around $1.7 trillion, while in a “bull case” it would even be around $2.1 trillion.
Tesla price rally
The reason for the price target increase is also that the Tesla share price has shot up so quickly and steeply since Trump’s election victory that it has already clearly left the original Wedbush price target of $400 behind. Tesla shares ended trading on the NASDAQ on Monday at $463.02 (+6.14 percent). Before the trading session, it temporarily rose by a further 3.09 percent to $477.35.
Editorial team finanzen.net
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