Tesla’s unstoppable surge shows no signs of slowing down.
On Monday, Tesla broke its own record high after news broke that Trump’s transition team had proposed removing electric vehicle subsidies.
Dan Ives, a securities analyst at Wedbush and one of Tesla’s most optimistic analysts, projected that Tesla’s stock could reach $650 per share within a year.
Tesla’s stock surged again that day, buoyed by two major positive factors.
First, Trump’s transition team recommended implementing the campaign promise to remove electric vehicle subsidies.
Tesla is virtually the only electric vehicle manufacturer capable of profiting from EV sales without government subsidies.
Removing EV subsidies could help Tesla regain market share in the U.S., where its position had weakened after introducing subsidies.
Except for a few Chinese companies, Tesla alone has the flexibility to reduce prices.
The bullish outlook on Tesla gained further momentum following Ives’ analysis note the previous day.
Ives substantially raised his price target for Tesla from $400 to $515.
The $515 target price significantly increased from the previous highest target of $420 set by Daiwa analyst Jairam Nathan.
In his “bull case” scenario, Ives suggests Tesla’s stock could soar to $650.
If Tesla hits the $515 target price, its market capitalization would approach $1.7 trillion, while at $650, it would reach about $2.1 trillion.
Ives asserted that a second Trump administration would be a “complete game changer” for Tesla, anticipating significant growth in the company’s autonomous driving and artificial intelligence (AI) sectors due to potential regulatory rollbacks.
That day, Tesla closed at a record high of $463.02, surging $26.79 (6.14%).
Since the November 5 election, Tesla’s stock has nearly doubled, skyrocketing over 90%.
