United States Representative Michael Guest, Chairman of the House Ethics Committee, has disclosed his Tesla (NASDAQ: TSLA) stock purchase that was made shortly after the November election.
Since the November 8 purchase, the stock has rallied 34% in just 42 days, raising possible questions about the timing of the transaction.
While Guest’s transaction is legal, the timing of this Congress trade might be of interest due to his position overseeing ethical conduct in the House.
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Notably, besides Tesla, the lawmaker has made significant purchases in the technology sector, with notable names including semiconductor giants Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN). Among these trades, NVDA has recorded the biggest returns, up over 100% since his February 20, 2024 purchase.
Other notable politicians who purchased the electric vehicle (EV) stock around the election include Rep. Marjorie Taylor Greene.
Tesla stock’s impressive run since elections
Although there remains lingering opposition to Congress trading, these politicians’ Tesla trades might be considered an obvious move considering Donald Trump’s election victory.
Indeed, Tesla became an attractive stock for investors, considering the close relationship between Trump and Tesla CEO Elon Musk, who is set to take on a role in the upcoming administration.
This relationship has resulted in anticipation that elements such as deregulation under the Trump administration could ease Tesla’s legal burdens and fast-track autonomous vehicle approvals.
The ramp-up of the Cybertruck, an affordable EV model, and cost reductions in key models are also expected to boost production and profitability, with inroads into artificial intelligence set to assist in diversifying revenue.
On the other hand, Wall Street analysts have a mixed outlook on Tesla. For instance, Mizuho Securities and Wedbush both raised the price target to $515, citing factors like changes in autonomous driving regulation, Trump-era policies, and a strong product pipeline, including the Model Q and Cybercab by 2027.
Mizuho values Tesla at $1.8 trillion, with $711 billion from core businesses, $614 billion from self-driving and Robotaxi, and $472 billion from humanoid robotics. Wedbush’s Dan Ives predicts a $2 trillion market cap by 2025, driven by AI and autonomous vehicle opportunities, despite tariffs and EV credit removal risks.
TSLA stock price analysis
By press time, TSLA was trading at $455, rallying over 4% in the last 24 hours. The equity is recovering from recent losses, which have seen the stock plunge 2.99% on the weekly chart.
TSLA continues to show bullish sentiment, trading above its 50-day and 200-day moving averages (MA). With a relative strength index (RSI) of 64.13, the stock approaches overbought territory, suggesting the need for caution.
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