Tesla Inc (TSLA) stock surged 5% in pre-market trading on Tuesday, continuing its recent rally amid growing optimism over the company's prospects in the areas of autonomous driving and artificial intelligence (AI) under the incoming Trump administration.
The electric vehicle maker's shares have seen a meteoric rise since the November election, fueled by hopes that Tesla's push into self-driving technology and AI initiatives will receive a major boost from a Trump White House eager to cut through regulatory hurdles.
On Monday, Wedbush analyst Dan Ives raised his price target on Tesla to $515 from $400, citing the "golden opportunity" for the company's full self-driving (FSD) software and robotaxi plans under the new administration. Ives sees the potential for Tesla's valuation to skyrocket to $2 trillion by 2025 if the approval process for autonomous driving is streamlined.
Adding to the bullish sentiment, recent data showed Tesla's insurance registrations in the key Chinese market reached 18,500 units in the week ending December 15, indicating continued strong demand. The company's overall deliveries in China hit record levels in November, bolstered by EV incentives and rising consumer interest.
With the planned launch of its unsupervised FSD software and autonomous ride-hailing service in 2025, Tesla is positioning itself at the forefront of disruptive technologies that could reshape the transportation and mobility industries. Investors appear confident that Tesla will benefit significantly from regulatory tailwinds and closer ties between CEO Elon Musk and President-elect Donald Trump.
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