Why Long Will Tesla Trump Effect Last?
Date
12/16/2024 3:14:18 PM
(MENAFN- Baystreet)
When Tesla (TSLA) CEO Elon Musk supported President-Elect Trump, the stock closed at an all-time high. Last Friday, shares gained 4.34% to close at $436.23, an all-time high. It earned the rally.
Stock markets are pricing in government reforms that would help Tesla thrive. Its competitors like Rivian (RIVN) and Lucid Motors (LCID) might benefit but that is unlikely. Instead, the 73% rise in TSLA stock after trump won reflects potential rule changes.
Reuters reported that the National Highway Traffic Safety Administration (NHTSA) may scrap the requirement that auto firms report crashes involving self-driving or autonomous driving systems.
Beyond EVs and ADAS software, Tesla's market is expanding into robotics, the cyber cab, and artificial intelligence. In its core market, EV sales are recovering. Tesla's China unit reported 21,900 unit sales in the first week of December. Tesla also reported 73k,000 units sold in November. The increase is due to the firm offering incentives. That included 0% interest loans for five years. Chinese consumers also received 10,000 yuan for Model 7 loans.
The chances are high that Tesla shares will continue to increase. Its market share will widen, while other automotive firms will languish. Toyota (TM), for example, will have a good chance of growing its hybrid market. TM stock will appeal to the value investor, who is unwilling to pay a premium on TSLA stock.
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