Tesla (NASDAQ: TSLA) has seen a remarkable rally since the November 5 election, propelled by optimism surrounding Donald Trump’s victory over Kamala Harris and a broader surge in market sentiment for U.S. equities.
On the day of the election, Tesla stock closed at $251.44, but it wasted no time surging higher. The stock notably hit a 52-week high in after-hours trading following reports of Trump defeating Harris in post-election polls, further boosting sentiment.
Just 30 days later, the stock closed at $369.49, marking a significant leap.
As of pre-market trading on Friday, December 6, Tesla is trading at $371.58, up 0.57% for the day.
$1,000 invested in Tesla on November 5 market open
For investors who bought Tesla shares on November 5, this rally has translated into impressive returns. A $1,000 investment made at the $251.44 closing price on election day would have bought approximately 3.98 shares of Tesla.
At today’s pre-market price of $371.58, those shares would now be worth $1,480.90, representing a 48.1% gain in just 30 days.
What’s driving Tesla’s rally?
Tesla’s performance since the election has been fueled by several factors, starting with optimism about a more business-friendly administration under Trump.
Investors are betting on a regulatory environment that could favor U.S. automakers, especially with Trump’s past emphasis on fostering domestic manufacturing and reducing bureaucratic hurdles.
The surge in Tesla’s stock price also reflects broader market momentum. A wave of enthusiasm surrounding the U.S. economy post-election has lifted major indices, with Tesla benefiting from increased investor confidence.
Most recently, on December 5, BofA Securities analyst John Murphy issued an investor note raising Tesla’s price target from $350 to $400 while maintaining a ‘Buy’ rating—a bullish call that now stands as one of the highest targets on Wall Street.
Featured image via Shutterstock
