Game-Changer’: Tesla’s Market Value Tops $1.1 Trillion as Election Sparks Investor Confidence
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Tesla's stock surged almost 9% on Monday, hitting its highest level since early 2022, with its market value surpassing $1.1 trillion as investor optimism grows over its potential under the Trump administration.
Wedbush analysts, led by Dan Ives, raised their price target on Tesla to $400, citing the anticipated acceleration of Tesla’s AI and autonomous driving projects under Trump’s presidency, which they believe could boost Tesla’s valuation by up to $1 trillion. Wedbush analysts argue that reduced regulatory hurdles will favor Tesla's Full Self-Driving (FSD) and AI initiatives, especially as CEO Elon Musk, a notable Trump supporter, becomes increasingly influential in government circles.
Since the election, Tesla’s stock has risen nearly 50%, achieving its highest close in over two years and pushing the company’s market cap above $1 trillion. Trump has even hinted at a potential role for Musk within his administration, possibly heading a government efficiency commission.
Meanwhile, hedge funds holding short positions in Tesla have faced substantial losses, with mark-to-market losses reaching $8.72 billion since November 4, according to S3 Partners. S3’s Ihor Dusaniwsky noted that ongoing short covering could continue pushing Tesla’s stock upward, as short sellers might be forced to buy back shares amid the rally-induced squeeze.
Paraphrasing text from "Yahoo!Finance"all rights reserved by the original author.
