The U.S. elections have significantly lifted Tesla’s (NASDAQ: TSLA) share price as optimism grows around CEO Elon Musk’s potential influence in a Trump-led administration.
This political alignment has spurred expectations of favorable policies for the electric vehicle (EV) maker, particularly in the autonomous vehicle space.
In the past month, Tesla’s stock has surged over 45%, largely fueled by post-election sentiment. However, despite the remarkable rally, analysts remain divided on the company’s valuation and future prospects.
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Analysts revise Tesla price targets
RBC Capital analyst Tom Narayan has raised Tesla’s price target to $313 from $249, citing increased confidence in the company’s technological advancements after recent investor sessions at Tesla’s Giga Texas facility.
The firm expressed growing confidence in Tesla’s progress toward autonomy goals, emphasizing its competitive edge over both legacy internal combustion engines and EV rivals in vehicle manufacturing.
Nevertheless, RBC cautioned that the stock’s rapid post-election surge is “not rooted in fundamentals,” and the firm sees limited upside in the short term.
Despite this warning, Narayan praised Tesla’s “secular growth engines” in autonomy, which he identified as a key driver for long-term success.
Similarly, Jefferies analyst Philippe Houchois raised Tesla’s price target to $300 from $195, maintaining a Hold rating.
Houchois suggested Tesla to capitalize on its $1 trillion valuation by raising equity capital.
He pointed to potential deregulation under the Trump administration as a key growth driver but cautioned that rising capital requirements could pose challenges for both Tesla and its competitors.
“Tesla should take advantage of shares re-rating 30% back >$1trn since Trump’s election to raise equity.”- the analyst said
A bullish long-term outlook
In contrast to the more cautious outlooks, Wedbush analyst Dan Ives has set an ambitious price target of $400. He highlighted Tesla’s AI and autonomy ventures as pivotal to unlocking a $1 trillion market opportunity in autonomous vehicles.
Meanwhile, Morgan Stanley’s (NYSE: MS) Adam Jonas has further fueled bullish sentiment, projecting a potential $500 price target driven by Musk’s anticipated influence on federal self-driving technology standards.
Amid this optimism, however, uncertainty persists over the potential repeal of federal EV tax credits, a move that could significantly impact Tesla’s financial dynamics.
Nevertheless, market experts remain confident that the company’s dominant position in the industry will enable it to navigate these challenges effectively.
Adding to this mixed outlook, Tesla’s upcoming Q4 earnings report is set to be a pivotal moment, particularly after disappointing October sales in the Chinese market raised questions about its global growth prospects.
Tesla stock price analysis
As of November 15, Tesla shares are trading at $320, up 3% in the past 24 hours but down 7% over the last week.
Analysts’ price targets currently range from $300 to $500, reflecting a mix of cautious optimism and strong confidence in Tesla’s ability to lead the autonomous revolution.
Notably, Tesla’s advancements in technology have prompted industry insiders to reclassify it as an AI-driven equity.
With a regulatory shake-up on the horizon and Q4 earnings on the radar, Tesla’s trajectory will likely depend on its ability to navigate near-term uncertainties while simultaneously capitalizing on its strengths.
These factors will be critical in determining whether Tesla can sustain its current momentum and achieve long-term growth.
Featured image via Shutterstock
