U.S. President-elect Donald Trump and Elon Musk watch the sixth test flight of the SpaceX Starship rocket on November 19, 2024 in Brownsville, Texas.
Brandon Bell | via Reuters
tesla In the wake of post-election rallies and Wall Street’s growing enthusiasm for Elon Musk’s electric car company, stocks soared to an all-time high on Wednesday, surpassing the all-time high reached in 2021.
The stock price rose to a closing high of $424.77, approximately $15 above the previous high of $409.97 on November 4, 2021.
Tesla’s market value has risen about 71% this year, with almost all of that increase since Donald Trump’s election victory early last month. The stock’s 38% rise in November was its best monthly performance since January 2023 and the 10th best performance on record.
According to Federal Election Commission filings, Mr. Musk poured $277 million into pro-Trump campaigns, turned support for Republican candidates into a full-time job in the lead-up to the election, and campaigned in battleground states. funded and leveraged voter registration efforts. Social media platform X consistently promotes its preferred candidate, often with false information.
The world’s richest man, whose net worth has grown to more than $372 billion, will join former Republican presidential candidate Vivek Ramaswamy in leading the Trump administration’s Office of Government Efficiency, according to Forbes. .
His new role could give Musk greater authority over federal agencies’ budgets and staffing, and the ability to push for the removal of inconvenient regulations. At Tesla’s earnings conference in October, Musk said he intended to use his influence with President Trump to establish a “federal approval process for self-driving cars.” Approval currently occurs at the state level.
“Stock prices are reacting to President Trump’s rally,” RothMKM analyst Craig Irwin said on CNBC’s “Squawk on the Street” last week. Irwin just raised his price target from $85 to $380, writing, “Musk’s genuine support for Trump likely doubled Tesla’s enthusiast base and increased confidence in a shift in demand.” wrote in the report.
Goldman Sachs analysts on Wednesday raised their price target for Tesla, joining a parade of companies that have raised their stock forecasts and valuations. “The market is taking a more positive approach to Tesla, including the AI opportunity,” Goldman analysts wrote.
Analysts from Morgan Stanley and Bank of America have also issued bullish reports recently.
Since Trump’s victory, Musk has accompanied the president-elect in meetings with world leaders and advised the president and members of Congress on which federal agencies, regulations and budget items the billionaire would like to eliminate or significantly reduce. I started doing it.
Tesla’s jump to an all-time record marks a dramatic change from its performance at the beginning of the year. The company’s stock price plummeted 29% in the first three months of 2024, its worst quarter since the end of 2022 and the third worst quarter since Tesla went public in 2010. At the time, we reported that investors were concerned about Tesla’s core business. Revenues decreased in the first quarter due in part to intensified competition with China.
Tesla reported an 8% year-over-year revenue increase in its third-quarter earnings report in October, which fell slightly short of expectations. However, the company reported higher-than-expected profits, and Mr. Musk said at an earnings conference that next year’s “automotive growth rate” would reach 20-30% due to “low-cost cars” and the spread of automobiles. “Conjecture”. “The advent of autonomy.” This forecast exceeded analysts’ expectations.
