With Donald Trump reclaiming the White House for a second term, a Wall Street analyst has noted that the win could be bullish for Tesla (NASDAQ: TSLA).
Tesla is particularly a key area of focus for Wall Street, given CEO Elon Musk’s role in the Republican candidate’s reelection campaign.
In this case, Wedbush Securities analyst Dan Ives has revised his outlook for Tesla, forecasting a potential increase in the automaker’s stock price due to specific advantages the company may gain under the new administration, he said in an X post on November 6.
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According to the analyst, while Trump’s return to the White House could generally hinder the electric vehicle (EV) industry by scrapping government rebates and tax incentives, Tesla is uniquely positioned to benefit.
Ives opined that in such an environment, Tesla will heavily rely on its market status as a leader in the EV sector due to a lack of federal support for the broader industry.
He forecasted that Tesla’s stock could increase by $40 to $50, placing its valuation above the $300 price target based on the latest valuation.
“The biggest positive from a Trump win would be for Tesla/Musk. We believe a Trump win is a negative for the EV industry as the EV rebates/tax incentives get pulled, however, for Tesla a huge positive for scale/price advantage. A Trump win could add $40-$50 to Tesla’s stock,” Ives said.
As reported by Finbold, Ives had warned that Tesla might face headwinds if Trump initiates a trade war with China through tariffs. He sees Tesla affected in this case, considering China is one of the company’s primary markets.
Trump’s potential support for FSD
In a separate outlook, Ives noted that the Trump White House could also prioritize autonomous driving technologies besides policy changes, expediting the development and adoption of full self-driving (FSD) initiatives.
Indeed, this speculation comes from Tesla’s focus on rolling out FSD technology, showcased at the Robotaxi’ Robotaxi’ event, which was termed underwhelming by a section of Wall Street.
In the meantime, Ives maintains that the EV maker is on the path to ranking as a $1 trillion company while projecting more growth thanks to Tesla’s venture in the artificial intelligence scene.
What’s next for TSLA stock price
At the close of markets on election day, TSLA was trading at $251.44, gaining over 3% in 24 hours. These short-term gains have turned Tesla positive for the year, up 1.22% in 2024.
Indeed, the stock seems to have reacted positively to Trump’s win, gaining 14.39% in pre-market trading on November 6.
This price movement is a welcome development for Tesla, which recently retraced its steps. Notably, Tesla was targeting $300 as investors reacted positively to the company’s better-than-expected third-quarter results.
Looking at TSLA’s next price target, stock trading expert Peter DiCarlo noted in an X post on November 6 that the “BX trend” indicator flashed a bullish signal, flipping from red to green at $242, signaling potential upside.
Initially targeting $255–$256, the expert pointed out potential resistance around $260–$264. However, if the daily trend indicator also turns bullish, Tesla could reach $272–$280.
Before the election, other select Wall Street analysts had offered a mixed outlook for TSLA’s share price. Now, with the markets reacting positively to a Trump win, it remains to be seen if Tesla will build on this momentum and target new highs.
