Tesla shareholders rejoiced when Trump won the US elections in 2024. Tesla shares have surged significantly following the election, indicating widespread optimism about the company’s prospects in a favorable political climate.

Tesla’s stock rose by more than 30% since Election Day, November 5, 2024. The surge in Tesla’s stock price has sparked interest from analysts and shareholders, who view it as an opportunity to profit from potential benefits.

In the third quarter, Tesla produced approximately 470,000 vehicles, delivered approximately 463,000 vehicles

Plans for new vehicles, including more affordable models, remain on track for the start of production in the first half of 2025. Also, the Shanghai Megafactory remains on track to begin shipping Megapacks in Q1 2025.

Antonio Di Giacomo, Senior Market Analyst at XS.com shares his views on Tesla

Tesla shares have seen a notable increase in the days following the election, reflecting overall optimism surrounding the company and its future under a favorable political environment. Tesla’s stock rose by over 30% since Election Day on November 5, 2024. This impressive rally has captured the attention of analysts and shareholders, who see Tesla as an opportunity to capitalize on policies that could benefit the company.

Tesla’s momentum in the market is attributed to its innovative performance in the automotive industry and expectations surrounding the relationship between Elon Musk and the new administration. Musk, who supported Donald Trump’s re-election campaign, could benefit from government policies that promote autonomy and artificial intelligence (AI), two crucial areas for Tesla’s growth. The new government is expected to reduce regulatory barriers affecting autonomous vehicles, facilitating Tesla’s expansion in this segment.

Moreover, Trump’s policies may include tax incentives and direct support for AI technologies, which are key for Tesla, a company already leading in these areas.

These factors have led many analysts to adjust their price target for Tesla shares, setting it around $400 for early 2025. This represents a significant bet on Tesla’s future as a leader in autonomy and artificial intelligence, two technologies that promise to transform mobility and the industry at large.

The market also values Tesla’s potential to expand into areas beyond autonomous vehicles. The company has invested in renewable energy solutions, energy storage, and other innovative projects, positioning itself as a critical player in transitioning to a more sustainable economy. The new administration’s policies could provide crucial support for Tesla to continue innovating and diversifying, thereby strengthening its market position and increasing its market value in the medium term.

Nevertheless, despite current optimism, risks remain. The automotive and technology markets are highly competitive, and Tesla faces constant pressure to innovate and stay at the forefront. Tesla’s growth projections rely on favorable and sustainable government policies. Additionally, changes in the administration or external factors, such as the global economy, could negatively impact the stock’s performance.

In conclusion, Tesla’s recent market surge reflects confidence in its ability to leverage a favorable political environment that supports innovation in autonomy and artificial intelligence. Although the support from the Trump administration and projected policies create an expansion scenario, the inherent risks in the industry and the global economy must also be considered. With a target price of around $400 for 2025, Tesla remains an attractive investment, with the potential to lead a new technological era in an environment that, at least in the short term, seems to be in its favor.