Shares of Tesla Inc. (TSLA) rallied 9.84% in pre-market trading on Friday, November 22nd, 2024, following the company's strong fourth-quarter performance and bullish prospects under the new Trump administration. The electric vehicle (EV) maker's stock surge came on the heels of robust demand for its flagship products and optimism around its autonomous driving ambitions.
The election victory of President-elect Donald Trump has fueled expectations of a favorable regulatory environment for Tesla's self-driving technology. Trump's transition team has promised to cut back regulations on autonomous driving, a move that could accelerate Tesla's rollout of its highly anticipated "Full Self-Driving" (FSD) system and robotaxis.
Moreover, Trump's pick for Secretary of Transportation, Sean Duffy, has expressed support for autonomous vehicle technology, stating in 2018 that it "can be remarkable in keeping our families and kids safe." This aligns with Tesla CEO Elon Musk's vision of betting the company's future on autonomous driving and robotaxis.
Beyond regulatory tailwinds, Tesla's business fundamentals remain strong. The company reported a surge in Cybertruck orders, reflecting continued demand for its innovative products. Additionally, revenue from Tesla's energy generation and storage business is growing at a compound annual rate of around 120%, diversifying its revenue streams.
Perhaps most significantly, Tesla's FSD technology is approaching a significant milestone, with Musk claiming that it will surpass human performance in the next one to two years. The company's FSD miles driven have increased exponentially, positioning it to disrupt not only the car market but also the ride-hailing services industry.
"Tesla's efficiency gains, combined with its innovations in AI and energy, are setting the stage for a potential surge in stock value, making Tesla a compelling investment opportunity for the coming years," said Antonio Linares, a Tesla bull on Substack.
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