$Tesla (TSLA.US)$ There is a possibility that President Trum...

There is a possibility that President Trump's policies could lead to deregulation in the self-driving cars and AI fields, providing tailwinds for Tesla. Dan Ives from Wedbush has raised Tesla's target stock price to $400 and issued a 'buy' recommendation.

Ives stated the following:

'Under the Trump administration, Elon Musk's long-standing self-driving car project is likely to be further promoted, presenting a great opportunity for Tesla.'

The sharp rise in Tesla stock is believed to be influenced by several factors. One of them is the 'short squeeze.' Short squeeze is a phenomenon where short selling investors cannot withstand the rapid increase in stock prices and further drive up the stock prices by buying back stocks. According to FactSet data, approximately 3% (about 79 million shares) of Tesla's tradable shares are being shorted, indicating that the focus on shorting Tesla remains high.