Elon Musk’s electric vehicle (EV) maker, Tesla Motors (NASDAQ: TSLA), has come a long way in recent weeks in large part thanks to the political alliance between the billionaire owner and President-Elect Donald Trump.
For much of 2024, TSLA stock held the dubious honor of being among the worst-performing S&P 500 stocks year-to-date (YTD), but at press time, it is 78.46% in the green within the timeframe and essentially its all-time highs (ATH) at $443.34.
Though most aggregate platforms still show the average TSLA share price target as deeply bearish, there is little doubt that analysts are catching up with Tesla stock’s actual performance, and the latest reassessment was even accompanied by a 50% increase in the forecast.
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Analysts revise Tesla stock price target as TSLA climbs to new all-time highs
On December 16, Truist Securities’ William Stein issued an interesting assessment, which is highly cautious despite the surface-level bullishness.
Indeed, Stein raised the price target by approximately 50% from $238 to $360 but maintained the ‘hold’ rating. The Truist securities expert explained that most of Tesla stock’s recent gains are driven by Elon Musk’s anticipated role in the incoming administration and closeness with the president-elect.
Furthermore, the analyst explained that expectations for the ongoing and upcoming quarters drove little of the positive momentum. Still, he did leave the space for possible actual Tesla gains likely to arise from a political climate more lenient towards the ‘Robotaxi,’ self-driving (FSD), and other similar flagship ideas of Elon Musk.
Still, it is noteworthy that not all analysts share Stein’s caution. Wedbush’s Dan Ives – possibly the biggest Tesla bull on Wall Street – recently offered yet another upward TSLA stock revision and set the new price target at $515, the highest among his peers.
Additionally, Ives stated that the bull case calls for an even more ambitious forecast of $650 for Tesla shares.
Why investors and analysts expect TSLA stock to climb higher in 2025
For some time, it has been no secret that President Donald Trump is more likely to be good for Tesla than not.
There has been a long-standing argument that despite the Republicans being unlikely to push for electric vehicles as much as the Demoncrats, Tesla is big enough that it will better absorb the headwinds than its competitors and, thus, solidify its market dominance.
Another prominent argument is that the incoming Trump administration will heavily deregulate many sectors and industries, thus offering additional tailwinds to Elon Musk’s EV maker.
Tesla – and other businesses owned by the South African-Canadian-American billionaire – have been engaged in numerous probes, investigations, and disputes with regulators over a wide array of issues, including FSD-caused deaths.
The incoming Trump administration is already moving to remove some of these roadblocks with, for example, a drive to remove a Tesla-opposed car crash reporting rule, according to a December 15 Reuters report.
Featured image via Shutterstock
