Written by Cláudio Afonso | LinkedIn | X
Tesla Inc. shares rose 1% to $295.95 in Friday’s pre-market trading, marking their highest level since September 2022 and extending gains to 19% since the election of Donald Trump as the 47th U.S. president on Tuesday.
Investors appear optimistic about potential regulatory shifts that could benefit Tesla under the incoming administration, despite Trump’s past reservations about electric vehicles and renewable energy.
On Thursday, Bank of America raised the price target on the stock to $350 from $265 while maintaining a Buy rating on the shares. BofA analyst cited that the company may benefit from a shift to a federal regulation of autonomous vehicles and full self-driving (FSD) nationwide despite being “relatively indifferent directly to most policies.”
Year to date, Tesla stock has gained 20%, after recovering from a 45% decline between January and late April.
In his victory speech, Trump praised Tesla CEO Elon Musk, calling him a “new star” and “super genius”. “He’s a character, he’s a special guy, he’s a super genius,” Trump said, adding, “We have to protect our geniuses; we don’t have that many of them.”
The rally marks a significant recovery for Tesla, whose shares dropped from $313 in September 2022 to a low of $102 in January 2023, the lowest level since August 2020.
Musk, who endorsed Trump on July 13, has voiced concerns over sudden, large tariffs on imported EVs, which he warned could disrupt supply chains and raise production costs.
The company’s chief executive said tariffs should be implemented in a way that gives the companies the time required to build factories, install equipment, and train workers.
Tesla started earlier this week Cybertruck deliveries in Canada, where prices start at CAD 137,990 for the dual-motor model and CAD 165,990 for the high-performance tri-motor Cyberbeast. The country is now the third one where the model is available following the U.S. and Mexico.
Written by Cláudio Afonso | LinkedIn | X
