Tesla in the Fast Lane: Price Increase Thanks to Political Influence

Tesla shares reached a new record high on Wednesday as the winning streak of the electric car manufacturer continues following the election victory of future US President Donald Trump. Since Trump's triumph last month, the Tesla stock price has risen by an impressive 65%. This remarkable increase is partially attributed to the savvy move by CEO Elon Musk, who had bet on a Trump victory. Musk's potential role in the new government makes investors optimistic about Tesla's future. With a new intraday high of $415.25, Tesla surpassed the previous mark of $414.50 and could also end above the previous closing record of $409.97. In addition to the Trump election and Musk's bold forecast, other factors also contribute to Tesla’s upward movement. Tesla's Chinese unit sold 21,900 electric vehicles in the first week of December of the current quarter, achieving its highest weekly sales to date. This follows a record month in November with 73,000 units sold, Reuters reports. In an attempt to further boost sales, Tesla offers incentives such as interest-free loans for five years and a subsidy of 10,000 Yuan for new Model Y loans. Many analysts believe that a more open government could make it easier for Tesla to obtain approval for its self-driving software and robotaxi service at the federal level, although this ultimately lies in the hands of state and local authorities. Analysts like Edison Yu from Deutsche Bank, John Murphy from BofA, and Adam Jonas from Morgan Stanley have raised their price targets for the stock in recent days. Edison Yu justified the increase in his price target from $295 to $370 with a greater value attributed to Tesla's autonomy efforts. Additionally, the 'Model Q', a more affordable electric vehicle, is planned for next year. Adam Jonas from Morgan Stanley confirmed his assessment that Tesla remains a top pick and raised his price target to $400. Jonas emphasized that Musk's influence in politics could expand Tesla's scope beyond the automotive sector.