Tesla Inc (NASDAQ: TSLA) was up 13% on Wednesday after Donald Trump scored a political comeback to be elected the 47th President of the United States.
But that’s just a drop in the bucket compared to where the EV stock is headed now that Republicans have regained control of the US Senate, as per Dan Ives – a senior Wedbush Securities analyst.
He expects the electric vehicles behemoth to hit a $1 trillion to $15 trillion valuation under a Trump presidency that he dubbed a “dream scenario for any TSLA bull” last night on CNBC’s “Your Money Your Vote”.
What the Trump administration mean for Tesla stock
Tesla stock was up just 1.0% versus the start of this year on the election day.
But the ongoing weakness will subside now that Donald Trump has been reelected as the President of the United States, according to the Wedbush analyst.
“This could ultimately add $40 to $50 per share to TSLA right off the bat,” he argued in a CNBC interview on Tuesday.
Dan Ives expects Trump’s victory to be a major tailwind for Tesla shares as the Republicans could favor less regulation.
A potential end to tax credits for EVs under the new government may actually prove to be a positive for TSLA in terms of scale and scope, he added.
Ives continues to pound the table on Tesla stock and sees an upside in it to $300 indicating potential for a more than 40% gain from here.
The electric vehicle stock, however, does not pay a dividend at writing and, therefore, remains unattractive for those interested in generating passive income out of the equities market.
Trump could be a boon for Tesla’s self-driving push
Wedbush Securities is super bullish on Tesla stock also because it expects Donald Trump to accelerate the company’s full self-driving ambitions.
Dan Ives estimates “Cybercab” to be pulled forward by as much as one year under the new administration.
The billionaire chief executive of Tesla Inc, Elon Musk, unveiled that autonomous vehicle in October. He expects Cybercab to go into production by 2027.
All in all, the analyst remains constructive on TSLA as it’s “one of the most undervalued AI names in the market.”
With Trump in the Office, the EV maker will be able to “more and more unlock that opportunity” in the coming years, he noted.
The bullish remarks arrived only weeks after Tesla missed revenue estimates but said its per-share earnings came in well above experts’ forecast for the third financial quarter as $739 million of automotive regulatory credits helped boost the profit margins.
Elon Musk now expects the “advent of autonomy” and “lower cost vehicles” to drive a 20% to 30% growth in vehicle deliveries in the coming year. Analysts, in comparison, had called for a 15% increase.
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