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Tesla Price Target Raised 32% by Bank of America After Trump’s Election Win

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Following Donald Trump’s election as the 47th U.S. president, Bank of America raised its Tesla price target by 32%, setting it at $350 per share. Analysts suggest Trump’s policies may favor Tesla, especially in advancing self-driving regulations, bolstering the automaker’s growth potential.

Tesla Set to Benefit from Potential Federal Autonomous Driving Regulations Under Trump

The price target for Tesla stock was raised by 32% by Bank of America analysts after Republican contender Donald Trump was elected as the 47th president of the United States.

Analysts at Bank of America changed their target price for Tesla stock from $265 to $350. Additionally, the company kept its "Buy" recommendation for the electric vehicle manufacturer. According to an Investing.com story, Bank of America analyst John Murphy told clients that Tesla CEO Elon Musk's tight relationships with Trump could work to Tesla's advantage.

According to Teslarati's analysis, TSLA should be OK with most policies covered in our recent election note. However, it might gain from a move toward federal regulation of fully autonomous driving (FSD) and autonomous vehicles nationally.

“In addition, it is difficult to judge how Elon Musk’s increasingly close public relationship with President Trump could benefit Tesla, but this needs to be monitored closely. We believe these factors, and potentially others, should support TSLA’s growth trajectory and thereby the higher earnings multiple,” Murphy stated.

Trump's Potential EV Policies Could Accelerate Tesla's Self-Driving Goals, Giving It a Market Edge

Despite its notable pro-EV stance, the Biden administration has had the regrettable tendency to overlook Tesla's and Musk's contributions to the US electric car industry. Numerous government organizations also looked into several of Musk's companies, notably when U.S. President Joe Biden stated in 2022 that Musk's "relationships with other countries are worthy of being looked at."

Like Wedbush analyst Dan Ives, who pointed out that a Trump presidency may hasten Tesla's FSD objectives, analysts at Bank of America said the Trump administration is open to considering Elon Musk's proposal for a national standard for regulations governing self-driving cars. The Bank of America analysts pointed out this might make it easier for Tesla's Robotaxi service to launch.

Aside from this, seasoned automakers like Ford and General Motors may stall their shift to electric vehicles due to Trump's seeming desire to loosen environmental laws. Tesla could further solidify its hold on the US EV market if this were to occur.

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