Tesla stock rose on Monday after a Bloomberg report said President-elect Donald Trump’s transition team is prioritizing the creation of a federal framework for fully autonomous cars.
Shares jumped 8% to $346.81, giving the electric car maker a market cap of $1.1 trillion, and Wedbush analyst Dan Ives thinks this is just the start of a rally that could eventually push the price to $2 trillion. Will send to
CEO Elon Musk then contributed more than $100 million to help elect Trump and emerged as a top adviser in his inner circle.
“Musk already has a big influence in the Trump White House and ultimately the golden path for Tesla around cybercabs and sovereign is now reached with a bold Trump/Musk strategic alliance that is real-time.” I and absolutely compatible with our thesis,” he wrote in a note on Sunday.
Trump Clears Regulatory “Spider Web”
His paper estimates that autonomous driving alone represents a $1 trillion opportunity for Tesla as the federal government under Trump clears the regulatory “cobwebs” that weigh on Musk’s vision for self-driving cars. .
Trump’s transition team did not immediately respond. of luck Request for comment.
Musk has been teasing autonomous capabilities in Tesla vehicles for years. In 2019, the company was developing an entire fleet of ride-sharing vehicles and predicted that by 2020 there would be more than a million Robotex on the road.
It didn’t happen. But last month, it unveiled the CyberCab, a self-driving EV with no steering wheel or pedals that it said will cost $30,000. Musk speculated it could be available “before 2027,” though he admitted he was optimistic with timelines.
Assessing Tesla’s outlook under Trump, Ives maintained his outperform rating and $400 price target on the stock.
He added that a $1.5 trillion and then $2 trillion valuation path will emerge in the next 12 to 18 months, with Cybercab representing the “golden goose.” For now, he thinks Tesla is the most undervalued AI play in the stock market today.
“In essence, Musk made a strategic and large bet on a Trump White House win that would become known as a ‘bet for the ages’ for TSLA bulls as Tesla and Musk now stand to reap the benefits of a new friendly regulatory era.” Ready for. The Beltway is ahead,” Ives wrote.
“Autonomous fast-tracking will be front and center for investors as many of Tesla’s 2026/2027 targets could be accelerated to stay on track with China’s timeline for autonomy currently underway.”
