Tesla shares have hit a record, surging 69% pop after the Trump victory

Tesla stocks jumped to an all-time high on Wednesday, surpassing their previous record set in 2021, driven by a post-election rally and heightened enthusiasm on Wall Street. Elon Musk’s electric vehicle company

The stock rose to a closing high of $424.77, up about $15 from $409.97 on Nov. 4, 2021.

Tesla’s market value is up about 71% this year, with almost all of those gains coming since then. Donald Trump’s election victory at the beginning of last month. The stock’s 38% rise in November was its best monthly performance since January 2023 and the 10th best on record.

Musk poured $277 million into Trump’s campaign effort, according to Federal Election Commission filings, and turned his support for the Republican candidate into another full-time job before the election, funding one. swing state operation registering voters and using his social media platform X to constantly show his favorite candidate, often with inaccurate information.

The world’s richest person, who has seen his net worth grow to more than $372 billion, ForbesHe will lead the Trump administration’s “Department of Government Efficiency” alongside one-time Republican presidential candidate Vivek Ramaswamy.

His new role could give Musk the ability to push for federal agency budgets, staffing and removal of cumbersome regulations. Musk said on Tesla’s earnings call in October that he planned to use his leverage with Trump to establish a “federal approval process for autonomous vehicles.” Currently, admissions take place at the state level.

“The stock is responding to the Trump blow,” Craig Irwin, an analyst at Roth MKM, he told CNBC “Screaming in the street” last week. Irwin just raised his price target to $380 from $85, saying, “Musk’s genuine support for Trump likely doubled Tesla’s fan base and raised credibility for an order reversal.”

On Wednesday, analysts at Goldman Sachs increased their price target on Tesla, joining a parade of companies that have raised their price expectations or stock valuations. As analysts at Goldman wrote, “the market is taking a forward-looking view of Tesla, even in terms of its AI opportunity.”

Analysts at Morgan Stanley and Bank of America have also published bullish reports recently.

Since Trump’s victory, Musk has accompanied the president-elect to meetings with world leaders, and began advising him and members of Congress on which federal agencies, regulations and budgets the billionaire would like to eliminate or greatly reduce.

Tesla’s record high marks a dramatic turnaround to start the year. Company shares It was down 29% in the first three months 2024, the stock’s worst quarter since late 2022 and the third worst since Tesla went public in 2010. At the time, investors were concerned about Tesla’s core business, which he reported. decline in income in the first quarter, partly because of increased competition from China.

At the same time third quarter earnings report In October, Tesla posted an 8% year-over-year increase in revenue, roughly beating estimates. Still, the company posted better-than-expected earnings, with Musk saying on the earnings call that his “best guess” is that next year “vehicle growth” will reach 20% to 30%, driven by “lower-cost vehicles.” “the arrival of autonomy”. That announcement was ahead of analysts’ predictions.