Tesla stock sees 16.6 lakh crore surge since Trump win

Tesla’s Stock Surges ₹16.6 Lakh Crore After Trump Victory, BofA Raises Price Target

Tesla’s (NASDAQ: TSLA) stock has been riding a strong wave since the recent U.S. election, surging nearly 26% and adding over ₹16.6 lakh crore to its market cap since Donald Trump’s win on Tuesday night. This Trump-fueled momentum reflects the perception of a more favorable regulatory environment under his administration, which analysts believe could bolster Tesla’s growth.

On Thursday, BofA Securities analysts boosted their price target for Tesla from $265 to $350, pointing to the election’s potential to ease regulations that support Tesla’s growth. “A Trump administration could reduce regulatory hurdles, benefiting TSLA’s trajectory,” noted analyst John Murphy.

The analyst highlighted that while the Biden administration scrutinized Tesla’s Full Self-Driving (FSD) system, Trump’s presidency might reduce such scrutiny, potentially speeding up the rollout of Tesla’s Robotaxi business planned for 2025. Musk’s proposal for a unified national standard for self-driving vehicle regulation has also found support within the Trump administration, which could simplify Tesla’s approval process currently required state-by-state.

Additionally, relaxed Environmental Protection Standards (EPS) and tighter policies on China could provide Tesla with competitive advantages in the EV market. As traditional automakers may slow their shift to electric vehicles due to reduced regulatory pressure, Tesla could benefit from less competition domestically. The Trump administration’s tougher stance on China could also limit Chinese EV companies’ entry into the U.S. market, strengthening Tesla’s position, particularly with its plans to introduce more affordable models.

Overall, this post-election period presents a significant opportunity for Tesla to expand its leadership in the EV sector, aided by favorable policy shifts and potential regulatory relaxations under Trump’s administration.