The terrific rise of Tesla, since the Trump victory

There's no missing the skyrocketing value of Tesla in the past month.

Since late October, when the market began to price in a Trump victory in the US presidential election, the value of its stock rose rapidly. And immediately following his win, it surged amazingly, from about US$243 on November 4, to US$358 today. That's a 47% increase in five weeks.

"Since the Trump victory the price of $Tesla (TSLA.US)$ has exploded. The market cap's gone over US$1 trillion. Before [the US election] Tesla was a polarising company – it's one of these stocks where you get a lot of people who are Tesla bulls, and a lot of people who are Tesla bears," explains GraniteShares chief executive officer Will Rhind.

Yesterday, Tesla shares jumped 3.5% taking the company's valuation up to US$1.1 trillion.

Looking ahead to 2025, moomoo Australia market strategist Jessica Amir says the outlook is bright, as Tesla is probably the biggest beneficiary of Trump’s election, meaning we could see US regulatory approval for its full self-driving capability in 2025, which is sooner than thought.

Rhind agrees Tesla is probably the stock that benefits most from a Trump presidency. "And in one respect that's obvious, some might say, because of the way Elon Musk has aligned himself with Trump."

He says approval of Tesla's full self-driving capability next year would be "a game changer for the company", because this new technology is a big part of the upside for Tesla stock – "and that's only going to come to fruition through regulation".

But that's not all when it comes to high expectations for Tesla.

Amir adds in another factor supporting Tesla, with China offering a CN¥10,000 subsidy for Tesla's Model Y. That’s about A$2122. The subsidy has been running from late November. And is in place till December-end to boost sales.

But she warns such a quick spike in the price of Tesla stocks over the past month means it could pull back, as some investors may look to sell out for profit gains.

"So although Tesla’s earrings are expected to rise as it gains market share in China, and its shares could be a lot higher in year, specially with full self-driving in the mix. Do consider there is room for Tesla shares to pull back a bit."

There's a few ways investors can trade in Tesla on the moomoo platform. These include buying and selling the $Tesla (TSLA.US)$ stock, or the leveraged ETFs available on our platform. These are issued by GraniteShares and allow you to buy 'short' or 'long', meaning you can make greater gains or losses based on the rise and fall of the Tesla stock.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

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