Wedbush Securities Senior Equity Analyst Dan Ives recently provided his insights on the potential effects of a Trump presidency to Tesla. As per Ives, a Trump presidency may be negative for the general electric vehicle sector, but it would be highly beneficial to Tesla.
In an interview with CNBC, Ives noted that a Trump win is actually a dream scenario for Tesla bulls. Ives estimated that a Trump win could push Tesla into a market cap of up to $1.5 trillion.
“It’s a dream scenario for any Tesla bull. I think this could ultimately add $40-$50 per share to TSLA stock right off the bat. We could now be talking about a $1 trillion, $1.5 trillion market cap for Tesla. Because first off, from an EV perspective, (Trump) will pull the EV tax credit, but that from a scale and scope perspective, is a positive for Tesla.
Apart from a boost to its market cap, Ives estimated that a Trump administration could very well fast-track Tesla’s efforts to deploy its self-driving vehicle fleet.
“He will fast track autonomous FSD, Cybercab could get pulled forward by about a year… This is really, if you’re a Tesla bull, if you wake up to this, this is exactly what you’d wanna see. And of course, Musk will clearly have a big voice in a Trump administration.
“I think that would be a top initiative, to fast-track FSD autonomous. There’s been a lot of regulatory hurdles. And this is something that Musk has talked about in Robotaxi day. Obviously the initial sentiment was negative. This is gonna be the key. Because ultimately, I think Tesla is the most undervalued AI name in the market. And you look what’s happen here. It’s just gonna unlock that opportunity for Tesla and Musk,” Ives said.
Dan Ives segment with CNBC can be viewed below.
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