From Nasdaq: 2024-11-19 09:23:00

Since Donald Trump’s victory in the 2024 U.S. presidential election, Tesla (TSLA) has seen a 5.6% rise in shares following reports of a federal framework supporting self-driving vehicles under the incoming Trump administration. CEO Elon Musk’s relationship with Trump could accelerate Tesla’s ambitions in autonomous and electric vehicles.

Trump appointed Musk to co-lead the Department of Government Efficiency (DOGE), emphasizing deregulation. This move benefits Tesla by providing a smoother pathway to advance its innovative goals without excessive regulatory red tape. Tesla stands to gain from the rapport Musk has built with Trump, securing a favorable position in the evolving automotive landscape.

Trump’s plans for a streamlined federal framework for autonomous vehicles (AVs) could remove hurdles for Tesla’s Full Self-Driving (FSD) technology rollout. This initiative aligns with Musk’s vision of a fleet of robotaxis, with the Cybercab concept expected to launch in 2026. Tesla’s ambitions in the robotaxi space could see significant acceleration under Trump’s regulatory stance.

Amid Trump’s AV regulatory stance, shares of Uber (UBER) and Lyft (LYFT) dropped close to 5% due to concerns that Tesla’s robotaxi network could disrupt their ride-hailing market dominance. Tesla’s insulation from EV tax credit removal, thanks to its early investment in EV technology, gives it a competitive edge over traditional automakers, positioning the company for further growth and innovation.

Tesla’s flourishing Energy Generation & Storage business, Cybertruck sales, and strong financials provide additional bullish catalysts for the company’s growth. With a Zacks Rank #1 (Strong Buy), Tesla’s rising estimates and stock performance indicate a positive outlook for the company’s future growth under the Trump 2.0 era. Tesla’s strategic positioning and innovative endeavors could drive its success in the evolving electric and autonomous vehicle markets.



Read more at Nasdaq: Tesla Under Trump 2.0 Era: Positioned for Explosive EV & AV Growth?