Tesla Shares Surge Post-Election

Investing.com – Shares in Tesla (NASDAQ:TSLA) jumped by more than 6% in premarket US trading on Monday, indicating an extension in a post-election rally for the electric vehicle giant.

The stock spiked by 8.2% on Friday, pushing Tesla's market valuation above $1 trillion. This increase was fueled by speculation that the company and its CEO, Elon Musk, would benefit significantly from Trump's second term in the White House.

Musk was a vocal supporter of Trump during the campaign, praising the former president at various events and contributing over $130 million to his re-election campaign. Trump has also lauded Musk's business acumen, suggesting he might play a role as 'Secretary of Cost-Cutting' in his new administration.

Prior to last week’s election, which Trump won decisively on a platform calling for major corporate tax cuts and reduced regulation, Tesla's shares had only risen approximately 1% this year. By the end of Friday, the shares had gained about 30% since then.

Tesla previously crossed a $1 trillion market cap in 2021 and rejoined a group of large-cap firms like AI-chipmaker Nvidia (NASDAQ:NVDA), software giant Microsoft (NASDAQ:MSFT), and Google-parent Alphabet (NASDAQ:GOOGL).

After Tesla's last quarterly earnings report, Musk suggested he could leverage his influence within the Trump administration to advocate for a 'federal approval process for autonomous vehicles.' He argued that the current state-level approval system presents regulatory challenges for Tesla, which is focusing on autonomous driving as a growth area.

Analysts at Wedbush, led by Daniel Ives, raised their price target for Tesla from $300 to $400 while maintaining their 'Outperform' rating on the stock.

> 'We believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years,' Ives noted.

> 'We estimate the AI and autonomous opportunity is worth $1 trillion for Tesla and expect these initiatives to be expedited under the new Trump era.'