Tesla Stock Jumps on Trump Team Plan to Ease Self-Driving Car Rules
1) According to Bloomberg, Trump’s transition team members have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department’s priorities.
2) YT video explained what benefits will ease of rule in self-driving has on Tesla and Ron Baron predicts Tesla stock will be worth $5 trillions (5 times).
3) Longtime Tesla shareholder and billionaire investor Ron Baron of Baron Capital recently weighed in on Tesla and Elon Musk’s potential in the coming years of the Trump administration. As per the legendary investor, Tesla could hit a market cap of about $5 trillion in 10 years.
This November alone, TSLA stock has surged about 25% during the electric vehicle maker’s post-election rally. Tesla currently has a market cap of $1.02 trillion as of writing. Despite TSLA’s recent rise, as well as the fact that his holdings have significantly grown over the years, Baron noted that he is still determined to keep his Tesla shares long term.
“No way I’m going to sell shares. If they get too big, I will have to trim a little bit, but no, I have no intention,” Baron noted.
4) My Take
• A hardcore Tesla hater (posted negative comments about Tesla and Elon Musk daily) refused to accept the fact that Tesla has regained a $1 trillion market cap. He self-made a TA chart and claimed that the stock will return to 270 soon. Not long ago, he drew a similar ' negatively biased' chart predicting the stock would go below 200. Obviously confirmation bias clouded his drawing and interpretation.
• Ron Baron predicted that Tesla had hit the bottom about 6 months and Dan Ives (Wedbush's analyst) maintained Tesla target price at $350 about 3 months ago. Their analysis was doubted and brushed aside by legacy media - only a few social media (e.g. X.com) continues to report them.
The fact is the rally actually started when Tesla reported Q3 earnings in early October - surged 21% in a single day not just recently. I have highlighted the importance of having a balanced view about a stock and don't just rely on legacy media. Read here:
1. Tesla Q3 2024 earnings, beating most estimates Stock popped 12%
2. Ron Baron on Tesla stock: It's going to go up huge. Now is the bottom...
3. Tesla’s Robotaxi unveiling a ‘historical moment’ catalyst to $1T market cap: Wedbush
1. Tesla Q3 2024 earnings, beating most estimates Stock popped 12%
2. Ron Baron on Tesla stock: It's going to go up huge. Now is the bottom...
3. Tesla’s Robotaxi unveiling a ‘historical moment’ catalyst to $1T market cap: Wedbush
• About 1 month after Q3 earnings and Robotaxi unveiled and 2 weeks after Trump's winning the US presidential election, the stock maintains above $330 +58% 1 month and +39% YTD (as of writing this post). There is no crashing as predicted by the Tesla hater - just expected pullback and volatility.
Source:
$BYD COMPANY (01211.HK)$ $BYD Co. (BYDDF.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Tesla (TSLA.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Rivian Automotive (RIVN.US)$ $MERCEDES-BENZ GROUP AG (MBGAF.US)$ $TOYOTA MOTOR CORP (TOYOF.US)$ $GEELY AUTO (00175.HK)$ $Stellantis NV (STLA.US)$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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ZnWC OP : The Tesla hater shared a post that the removal of EV Tax Credit will hurt Tesla. Actually this is an old argument that legacy media is digging out to report. The above YT explained that it will affect the whole EV industry, not just Tesla which the Tesla hater will not tell you. Below is my take:
In general, the EV Tax credit (Inflation Reduction Act or IRA) will increase the sales of EV makers. But the Tax credit is selective based on car models. The non-Tesla EV (e.g. Ford and GM) models benefit more than Tesla EV models. Rumour said that the Biden administration is biased against Tesla (and Elon Musk).
With Trump becoming the president next year, removing the EV Tax Credit is highly probable and it will hurt non-Tesla EV (e.g. Ford and GM) more than Tesla. In fact, analysts expect theTesla EV market share in the US to increase (currently at 50%) after EV Tax Credit is removed. This is because Tesla can produce cheaper EVs due to the economy of scale as compared to the non-Tesla EV makers who will have no choice but to increase the EV selling price.
The argument that non-Tesla makers can increase the hybrid car sales is weak. The cost of producing a hybrid car is higher than BEV (pure electric EV) and there is no evidence that hybrid car sell better before IRA is implemented. In fact during that period, Tesla Y became the best selling EV in the US. As for ICE car, the sales have been decreasing for the past 5 years due to lack of innovation and productivity.
20+2 Reasons Why Tesla stock is up and may reach ATH price soon
https://www.moomoo.com/community/feed/113460726005766?share_code=01zVcC
圣何塞金牌韭菜 ZnWC OP : 实际上Tesla最便宜的车型因为不是美国产，今年已经没有7500了，而其他品牌的电动车0apr 0down还要40k+![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
如果没有补贴 只会更贵![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ZnWC OP 圣何塞金牌韭菜 : Obviously you didn't read my explanation clearly, watch the YT and read the article below. Your argument is flawed by assuming that the EV Tax Credit affect only Tesla.
Just highlighted the 4 catalysts of Tesla:
1. Refreshed Model Y from H1 2025.
2. Second Megapack factory in Shanghai from Q1 2025.
3. Cybertruck: continued ramp, lower priced trim, international deliveries.
4. Next generation vehicles from H1 2025.
20+2 Reasons Why Tesla stock is up and may reach ATH price soon
https://www.moomoo.com/community/feed/113460726005766?share_code=01zVcC
圣何塞金牌韭菜 ZnWC OP : 我的意思是别的品牌的ev会更贵，对特斯拉其实更加利好，model3只需要30-40k，且已经没有7500，据我所知这个价格级别的ev只有nissan的leaf…![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")