Since Tesla (NASDAQ: TSLA) unveiled its Cybercab product line at the October 10 Robotaxi event, the electric vehicle manufacturer’s stock has skyrocketed, culminating in a $1 trillion market capitalization milestone.
Tesla’s stock opened at $217 after the launch on October 11. A month later, on November 11, the stock steadily climbed, trading at $321, an increase of 47.9%.
TSLA is looking to extend its momentum into the November 11 trading session, surging almost 7% pre-market.
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Therefore, if you had invested $1,000 in Tesla stock on October 11, you would now have approximately $1,479, reflecting a gain of $479 within a single month.
TSLA’s rollercoaster ride after Robotaxi event
Indeed, Tesla stock’s return has not been smooth for the Texas-based firm, especially since Wall Street largely deemed the Robotaxi event disappointing.
The main concerns stemmed from the company’s lack of details regarding timelines for rolling out Cybercab alongside its full self-driving technology.
However, Tesla received a reprieve as investors reacted positively to its Q3 earnings. It recorded revenue of $25.18 billion, reflecting a 7.85% year-over-year growth.
TSLA shares gained further momentum following Donald Trump’s re-election, as investors bet on the company due to the president-elect’s close ties with CEO Elon Musk. Since the November 5 polls, the equity has appreciated by over 25%.
What’s next for Tesla stock?
As things stand, Tesla’s post-election wave seems unstoppable. It remains to be seen how the stock will fare once Trump assumes office, especially as there are concerns he might repeal the federal tax credits offered to EV manufacturers.
Despite this lingering concern, Wedbush Securities analyst Dan Ives sees more growth potential for TSLA and projects that the Trump administration could mean less regulation for Tesla.
Initially, Ives noted that Tesla would likely thrive in such an environment, banking on its strong market position.
“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 from flooding the U.S. market over the coming years,” Ives said.
Investor optimism is also derived from speculation that Musk might join the Trump administration, a strategic move that could see him influence policies related to the EV sector.
Already, the executive has hinted at using his influence with Trump to advocate for improved regulatory outlooks for autonomous vehicles. In the third-quarter earnings call, Musk stated that he intends to push for a “federal approval process for autonomous vehicles,” which currently lies with the states.
Possible Tesla headwinds
The company could also face some headwinds regarding its sales, as recent data indicates that Tesla vehicle sales in China in October were lower than in any month since before July 2024, potentially signaling a downturn in Q4.
Once the Trump election euphoria cools down, it will be interesting to monitor how the China sales will influence investors and Wall Street.
Following the post-election momentum, most analysts have raised their stock targets to new highs, with Bank of America (NYSE: BAC) issuing a Street-high target of $350, which is on course to be reached.
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