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Tesla reached a trillion dollar market value on Friday for the first time since April 2022.
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The stock rose 27% after Donald Trump’s election victory, boosting Elon Musk’s fortune.
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Wedbush notes that Tesla will have a competitive advantage if Trump eliminates electric vehicle subsidies.
Tesla reached a market valuation of $1 trillion for the first time since April 2022.
The stock rose as much as 7% on Friday to an intraday peak of $319.44, with shares up 27% since Donald Trump was declared the winner of the US presidential election.
Tesla CEO Elon Musk has been a major backer of Trump’s campaign in the last few months, donating more than $100 million to efforts to re-elect him.
The huge gain in Tesla shares this week catapulted Musk to a net worth of about $300 billion, cementing his position as the world’s richest person, according to Bloomberg data.
Wedbush analyst Dan Ives said Trump’s victory, while potentially negative for the broader electric vehicle sector, could significantly benefit Tesla.
That’s because while federal EV rebates and tax breaks will likely be withdrawn during Trump’s second term, Tesla is better suited than its competitors to navigate such a scenario.
“Tesla has the scale and scope unparalleled in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled with likely higher Chinese tariffs that would continue to drive out cheaper Chinese EV players . (BYD, Nio, etc.) so as not to flood the US market in the coming years,” Ives said in a note this week.
Significant deregulation under Trump could also bring Tesla’s Full Self-Driving platform to market faster. Tesla’s premium valuation has largely depended on its progress in delivering a fully autonomous vehicle, so investors would most likely welcome any progress on that front.
Shares of Tesla are up 26% this year, in line with the gains of the S&P 500 and the Nasdaq 100.
Read the original article on Business Insider
