Tesla: Tailwind from Regulatory Changes

Tesla is currently experiencing a rise in the stock market, triggered by positive analyses from Wall Street, lifting the company to new record highs. The shares rose by 2.5 percent on Tuesday, reaching the mark of $470 for the first time. Over the last five days, Tesla recorded an increase of 17 percent, supported by positive developments regarding Elon Musk's connections to the Trump administration. Since the presidential elections, Tesla has seen an impressive rise of 87.2 percent. Analyst Vijay Rakesh from Mizuho Securities now rates Tesla with "Outperform" and dramatically raises the price target from $230 to $515. He sees significant potential for Tesla in specific regulatory adjustments expected under the upcoming Trump administration. Rakesh predicts that relaxed policies for autonomous driving and the possible elimination of tax credits for electric vehicles could benefit Tesla compared to its competitors. Due to its leadership position in the areas of electric mobility, solar energy, and charging infrastructure, Tesla could, according to Rakesh, better capitalize on political changes. Mizuho sees a stock price of $681 in an optimistic scenario, provided that Tesla makes progress in the introduction of Full Self-Driving and Robotaxi programs as well as with the Optimus robot and AI development. Dan Ives from Wedbush supported this optimistic outlook by also raising Tesla's price target to $515 and estimating the market potential for artificial intelligence and autonomous driving at around one trillion dollars. A recent Reuters report indicates that the Trump administration is considering exempting automakers from the obligation to report accidents with self-driving systems, which would be advantageous for Tesla. In the past, the company had to report over 1,500 accidents related to its autopilot systems to the NHTSA.