Tesla Stock Rises After Massive Price Target Hikes On Trump, AI Factors: Retail’s Charged Up

Roth MKM described Tesla’s AI mission as a smarter co-pilot that "aims to solve orders of magnitude more chaos than other products".

Shares of Tesla, Inc. climbed over 3% on Monday morning, reaching a one-week high after bullish notes from two Wall Street analysts. 

Roth MKM upgraded Tesla to ‘Buy’ from ‘Neutral’ and more than quadrupled its price target to $380 from $85. 

The brokerage argued that Elon Musk’s "authentic support” for President-elect Donald Trump has broadened Tesla’s enthusiast base and bolstered credibility for a potential demand surge. 

Roth’s new target represents a 7.6% upside from Tesla’s current trading levels. 

The brokerage described Tesla’s AI mission as a smarter co-pilot that "aims to solve orders of magnitude more chaos than other products", and pointed to an improved regulatory climate for CyberTaxi development.

One can now "daydream about a beautiful red wave of EVs sweeping across the U.S., with a shiny gold 'T' on every car," Roth’s analyst wrote.

Stifel analyst Stephen Gengaro also raised Tesla’s price target to $411 from $287. This is reportedly the highest target on Wall Street, representing a 16% upside from its current price and marks a level last seen over three years ago.

The brokerage maintained a ‘Buy’ rating, emphasizing Tesla’s innovation in AI-driven full self-driving (FSD) technology and its transformative potential through the upcoming Cybercab robotaxi. 

The brokerage reiterated that Tesla is more than an automaker, as reflected in its market capitalization exceeding the combined value of the top 10 global carmakers. A revised sum-of-the-parts analysis was cited as the foundation for the increased target.

Tesla’s popularity on Stocktwits surged as sentiment flipped to ‘bullish’ from ‘neutral’ Monday morning. The ticker remains the platform’s most followed, with over 982,000 watchers.

Investors have grown increasingly optimistic since the Nov. 5 U.S. election results, banking on Musk’s rapport with Trump to benefit Tesla, especially if federal standards for self-driving cars are introduced. 

Such regulations could streamline the rollout of Tesla’s robotaxi service, planned for late 2025.

Adding to the excitement, Ashok Elluswamy, Tesla’s vice president of AI software, announced on Saturday that version 13 of Tesla’s Full Self-Driving (FSD) software began rolling out to customers. 

Musk has placed significant bets on automation and robotics as the company’s future, stating that investors skeptical of autonomous driving should avoid Tesla shares.

Dan Ives from Wedbush Securities has projected a potential $1 trillion incremental valuation for Tesla’s AI initiatives under a Trump presidency.

Following a tough first half of 2024, Tesla’s stock has rebounded strongly, gaining more than 40% year to date.

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