Tesla (TSLA, Financial) shares jumped over 9% to $350 on November 11, boosting the company’s market cap to more than $1 trillion as investors bet on the Trump win. Relations between Trump and Tesla’s chairman, Elon Musk, have raised investors’ hopes of policy changes that should benefit Tesla’s self-driving car plans and artificial intelligence projects, which analysts had expected. Wedbush analysts have raised their price target of Tesla to $400 from $300, given new opportunities with the new administration in the United States.
Tesla stock jumps 9%, crossing the $1 trillion market cap milestone.
The respective gains come after a full week of the electric car maker’s shares rising by 30%. Musk, who contributed over 130 million dollars to Trump’s campaign, saw his worth surpassing 300 billion dollars. People are again wondering if Musk will be officially involved in the new administration or will still be indirectly controlling everything from the shadow. In a CNBC report, the firm explains that beyond the $19 billion SpaceX has secured from federal contracts, Musk will gain more, whereas some of the Tesla federal probes could ease or end.
Analysts at Bank of America stated the fluid nature of Musk’s engagement with Trump as a key reason for watching, although they also lifted their Tesla price estimate from $265 to $350. There is still a vast array of potential policy changes that Trump could make, including changing the $7,500 electric vehicle tax credit or at least increasing it for other automotive firms, which could affect Tesla. People are still watching these events; meanwhile, critics analyze Tesla in the light of what seems to be a highly positive political climate for Musk and his enterprises.
This article first appeared on GuruFocus.