Shares of Tesla (TSLA) surged in pre-market trading as investors bet that Trump’s possible win could significantly benefit the company and its CEO, Elon Musk. Musk has substantially backed Trump, channeling both time and resources into Trump’s campaign. The billionaire donated over $100 million to the pro-Republican organization, America Pac, and hosted town halls in swing states like Pennsylvania.
Furthermore, he launched a unique campaign initiative, giving $1 million daily to supporters who signed a free speech petition. On Election Day, he even provided transportation to polling stations for Amish voters who couldn’t drive.
Musk Could Be in the White House
Trump revealed that, if re-elected, he intended to establish a government efficiency commission led by Musk. In fact, at a Madison Square Garden rally for Trump on October 27, Musk introduced the idea of a minimum of $2 trillion in cuts to the U.S. federal budget.
In a celebratory speech following his presidential victory, Donald Trump praised his top donor, Elon Musk, and said, “A star is born: Elon.” Musk’s promised role as head of a new Government Efficiency Commission will give the billionaire sweeping powers to recommend deep cuts to what he deems a “vast federal bureaucracy . . . holding America back in a big way.”
Musk is also championing deregulation and is likely to gain influence over U.S. policy on artificial intelligence, space exploration, and electric vehicles—sectors in which Musk has a personal stake through his leadership of xAI, SpaceX, and Tesla.
Wedbush Analyst Believes TSLA Could Benefit from a Trump Win
Analyst Daniel Ives also commented that, even if Trump, a known skeptic of EV technology, withdraws EV subsidies, Tesla would still be able to maintain a competitive edge with its unmatched scale in the EV market. Musk and his ventures are positioned to thrive in a Trump-led era, with Musk’s new influence over policy and Tesla’s resilience.
Ives has a Buy rating on TSLA with a price target of $300, implying an upside potential of 19.3% at current levels.
Is TSLA Stock a Buy?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells. Over the past year, TSLA has increased by more than 10%, and the average TSLA price target of $207.83 implies a downside potential of 17.3% from current levels.
