Tesla Stock Hits $1T Market Cap as Musk Backs Trump Return
Tesla’s stock has recently surged, reflecting a renewed synergy between CEO Elon Musk and President-elect Trump. The company’s valuation exceeded $1 trillion for the first time in over two years. Shares of the electric vehicle (EV) giant rose by 8.2% to $321.22. This rally was fueled by Musk’s endorsement of Trump’s campaign and expectations of regulatory advantages under the new administration.
How Musk-Trump Alliance Could Accelerate Autonomous Driving Advancements
Elon Musk, a vocal supporter of self-driving technology, could benefit if Trump assists entrepreneurs by addressing regulatory bodies. Garrett Nelson, a senior equity analyst at CFRA Research, highlighted the likelihood of a Trump administration implementing regulatory changes to support Tesla’s autonomous driving project. Such changes could reduce bureaucracy and grant Tesla a fast track to advanced features.
Trump, who has been a historical sceptic of EV incentives relating to energy policies, promoted Musk as a “super genius”, adding that, that would lead to cosy agreements in the case where Tesla’s invention becomes relevant to national priorities.
Additionally, Trump’s support may help delay or ease scrutiny from the National Highway Traffic Safety Administration (NHTSA) concerning Tesla’s Full Self-Driving (FSD) systems. The NHTSA had recently initiated an evaluation following reports of accidents in challenging visibility conditions, such as fog or glare. A delay in regulatory actions could allow Tesla to make refinements to its software without facing immediate penalties.
Tesla’s stock has risen 29% over the past week, adding a massive $230 billion to its market cap. Investors appear to view this political alignment as a unique opportunity for Tesla to push boundaries in autonomous driving, further strengthening its leadership in the EV sector.
Tesla Stock Chart Analysis
TSLA/SUD 15-Minute Chart
Reviewing the performance of Tesla shares in the chart above, we can observe a robust rally. Very recently, the price surged to over $320. The stock closed at $321.22, marking a massive rise of 8.19%.
The gradual rise of the stock indicates growing investor confidence. This confidence may stem from the prevailing market situation. It could also be attributed to new developments related to Tesla and its CEO, Elon Musk.
The stock recently reached a close maximum of $328.71 in the latest recorded session. This level could act as a significant headway. It is worth keeping a close watch on the resistance line. Breaking through this line might be challenging.
The Relative Strength Index (RSI) is currently 71.08, indicating that Tesla may be overbought. This high RSI suggests we might see a pullback or a period of consolidation as some investors take profits after the recent surge. Still, the trend remains bullish, with buying pressure supported by recent spikes in volume.
As we look ahead, there’s a good chance of continued volatility, especially with Tesla’s next earnings report coming up in 72 days. We’ll want to watch if the price retraces towards the $300 support level, where it previously consolidated.
If Tesla breaks past $328, we could see further upside, potentially driving the stock to new highs above $340. For now, we’re in a strong position, but should stay cautious of potential short-term corrections due to the overbought RSI and rapid recent gains.
The post Tesla Stock Hits $1T Market Cap as Musk Backs Trump Return appeared first on FinanceBrokerage.
