Tesla stock continued its Donald Trump rally Monday, after its market capitalization reclaimed the $1 trillion mark on Friday. The stock also received a significant price-target hike from a longtime Tesla bull.
The EV giant is on a 39% tear since President-elect Donald Trump defeated Vice President Kamala Harris in the Nov. 5 election. Analysts generally see the Trump presidency as an overall negative for EVs, but a positive for Tesla. Chief Executive Elon Musk fostered a good relationship with the president-elect after campaigning tirelessly for him throughout the election cycle.
Musk could also join the new Trump administration in an official or advisory capacity.
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, on Monday raised his price target on Tesla to 400, up from 300, based primarily on the belief that the "Trump White House win will be a game-changer for the autonomous and AI story for Tesla and Musk over the coming years."
Prior to Monday's market open, Tesla stock was trading about 24% below 400.
Ives wrote Monday that a Trump presidency will offer friendlier regulatory hurdles for artificial intelligence and fully autonomous driving, a potential boon for Tesla and its Cybercab, or robotaxi.
"The $1 trillion of AI valuation will start to get unlocked in the Tesla story and we believe the march to a $1.5 trillion and $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD and autonomous penetration of Tesla's installed base and the launch of Cybercab representing the golden goose," Ives said.
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Tesla Stock Performance
TSLA stock surged 9% to 350, hitting an intraday high 358.64, during market trade on Monday. Last week, Tesla stock spiked 29% to 321.22, the biggest weekly gain since the week ended Jan. 27, 2023.
Tesla stock headed into Monday's market open with a $1.03 trillion valuation, topping the $1 trillion mark on Friday for the first time in two years. TSLA stock is now on the IBD Leaderboard watchlist.
On Nov. 6, Tesla stock gapped up above an alternate handle buy point of 273.54 but was quickly extended.
Bank of America analysts on Thursday raised the firm's price target on Tesla to 350 from 265 and maintained a buy rating on the shares. The firm wrote Tesla may benefit from a shift to a federal regulation of autonomous vehicles and full self-driving, or FSD, nationwide.
Cathie Wood Cuts Tesla Stake
Meanwhile, Cathie Wood and her Ark Investment Management firm have sold Tesla stock repeatedly since Oct. 28 when Ark Invest unloaded more than 120,000 shares, according to the company's daily trade disclosure. Over this stretch, Wood has sold more than 330,000 shares, including selling 85,019 TSLA shares on Thursday.
As of Nov. 9, Tesla stock is the top holding in the ARK Innovation ETF with a 14.94% weight. Tesla ranks second in ARK Next Generation Internet with a weight of 10.3%. The EV company is also the top stock in ARK Autonomous Tech with weight of 15.76%.
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Tesla stock ranks second in the 35-member IBD Auto Manufacturers industry group. The stock has an 88 Composite Rating out of a best-possible 99. Shares also have a 95 Relative Strength Rating and a 77 EPS Rating.
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