Tesla's stock surged 39% in four days, Musk's wealth surged by $70 billion, and Wall Street continues to be bullish. The Paper, 2024/11/12 12:35.
San Francisco, California, USA, Tesla store. Visual China archive. Musk's 'investment' has paid off, with his wealth soaring by $70 billion (approximately 506 billion RMB) in four days.
As of the closing of U.S. stocks on November 11, Tesla's stock price has shown a strong upward trend again, increasing nearly 9%, with a closing price of $350; the market capitalization surged by $92.3 billion overnight, successfully pushing the company's total market capitalization over $1.12 trillion.
The rise in stock price is a continuation of the post-U.S. election surge. U.S. Republican presidential candidate Trump announced his victory in the 2024 presidential election at 2 a.m. local time on November 6, and Tesla's stock price skyrocketed due to CEO Elon Musk's full support for Trump. Over the four trading days since the election, Tesla's stock price has soared by about 39%.
At the same time, this has also propelled Musk's personal wealth to a new milestone. Musk's business empire may collectively benefit, and the potential impacts on Tesla are of great interest to investors.
Trump has long been seen as not very friendly to clean energy, and he has stated that he would not allow California to mandate that all vehicles in the state be electric within ten years, with Tesla being one of the representatives.
Many industry experts believe Trump will terminate the electric vehicle subsidy program. However, Musk seems unbothered by this; he posted on X in July stating, 'Ending subsidies will only benefit Tesla.' Notably, apart from the uncertainty surrounding electric vehicle subsidies, Wall Street believes Musk's business empire will benefit greatly from the new government.
Musk's companies are generally high-tech enterprises in cutting-edge fields, and for a long time, he has sought to reduce regulation to eliminate obstacles to the growth of his large business empire.
His enterprises include Tesla, social media X, Space Exploration Technologies Corp (SpaceX), AI startup xAI, brain-computer interface company Neuralink, and tunnel company Boring Co.
Analysts expect Musk may sign new contracts worth billions of dollars with the government, not including the $19 billion contract his SpaceX company has already received. Additionally, these companies are currently involved in a series of investigations and lawsuits by federal agencies, involving issues such as alleged violations of securities laws, workplace safety, violations of labor and civil rights, violations of federal environmental laws, consumer fraud, and vehicle safety defects.
The 19 federal lawsuits and investigations against his companies that have been disclosed so far may be coming to an end, partially or entirely. Well-known tech analyst and Deepwater Asset Management partner Gene Munster has long been bullish on Tesla. In an interview with foreign media last week, he stated: "He (Musk) now has the Midas touch and is very good at listening." Munster believes that besides Tesla, SpaceX is also an 'obvious beneficiary' of President Trump's term, and with the new government considering drafting AI regulations, xAI may also benefit.
Wall Street has raised target prices, Musk's wealth has surged. Analysts view Musk's strategic gamble on Trump's entry into the White House as a 'once-in-a-lifetime bet' according to Tesla bulls.
Driven by favorable news, Wall Street analysts have raised Tesla's target price.
Dan Ives, an analyst at Wedbush Securities, reiterated his 'outperform' rating on Tesla stock and raised his target price from $300 to $400.
Ives estimates that the artificial intelligence and autonomous driving segments of Tesla's business are valued at around $1 trillion, and he expects that within the next 12 to 18 months, Tesla will surpass the $2 trillion market capitalization threshold. Ives stated that he fully believes that under the leadership of the Trump administration, the federal regulatory challenges that Musk and his team have faced in the fully autonomous vehicle sector over the past few years will be greatly alleviated.#BabyMarvinf9c7正在牛市赛道起点
