Trump Win ‘Biggest Positive’ For Elon Musk’s Tesla, Tech Bull Says It Could Boost EV Giant’s Stock By This Much

by | Nov 6, 2024 | General

Tech bull and prominent analyst Dan Ives is optimistic about the impact of a potential Donald Trump win on the Tesla Inc. (NASDAQ:TSLA) stock, as the former president stands three electoral votes away from securing the presidency.

What Happened: Ives, an analyst at Wedbush Securities, suggests Tesla could see substantial gains under a potential Trump administration, despite broader challenges for the electric vehicle industry.

“The biggest positive from a Trump win would be for Tesla/Musk,” Ives wrote on X, formerly known as Twitter. “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.”

Ives projects a potential $40-$50 boost to Tesla’s stock price under a Trump presidency, citing the company’s established market position and manufacturing scale. Based on the current Tesla stock price, this presents an upside of nearly 16% to 20%.

Additionally, he expects significant artificial intelligence initiatives that would benefit Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google, and Palantir Technologies Inc. (NYSE:PLTR).

Trump is currently leading key battleground states, according to the Associated Press.

See Also: Trump Gives Victory Speech In Florida As Winning Pennsylvania Puts Him At Brink Of Victory, Vows To ‘Fix Everything About Our Country’

Why It Matters: Meanwhile, the news of Trump’s potential re-election has already had a significant impact on the market. The shares of Trump Media & Technology Group Corp (NASDAQ:DJT) surged, and stock futures also experienced a rise on election night.

Additionally, yields on U.S. sovereign debt rose as investors digested the preliminary results from the closely contested fight between Trump and Kamala Harris.

Price Action: Tesla stock closed at $251.44 on Tuesday, rising by 3.54%, for the day. In after-hours trading, the stock climbed further 3.01%. Over the past year, Tesla’s stock has surged by 14.67%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote