Tesla (TSLA -0.22%) shares have been on quite a roll since the U.S. election on Nov. 5. CEO Elon Musk has become a confidant to President-elect Donald Trump, and investors feel future public policy on electric vehicles (EVs) could give Tesla a major boost.
That is what has investors continuing to pile into Tesla stock. With another big gain to start this week’s trading, Tesla shares have now soared by more than 30% since Election Day. And one Wall Street analyst thinks there’s more to come.
In a new report released by Wedbush analyst Dan Ives, he said that Tesla is now on a path that could bring big gains to investors. He rates the stock a “buy” and thinks shares are worth $400, reports Barron’s. That would represent a gain of nearly 25% from last Friday’s closing price.
Tesla’s full self-driving bet
Ives noted that Musk’s relationship with Trump is already beginning to set up potential policy changes related to EVs. Reports over the weekend said Trump’s transition team is already working to regulate self-driving vehicles on a federal level, rather than by individual states.
That could pave a smoother path for Tesla’s autonomous vehicle ambitions. In his Sunday report, Ives wrote, “The golden path for Tesla around Cybercabs and autonomous is now within reach with an emboldened Trump/Musk strategic alliance playing out in real-time and very in line with our [Tesla investment] thesis.”
The analyst noted that a federal approach could be a path to easing rules related to self-driving vehicles. Rolling out Tesla’s Cybercabs or selling the software to existing Tesla owners would be a smoother process across state lines as well. It would be a big tailwind for Musk’s artificial intelligence (AI) vision for Tesla.
Regarding his business interests, Musk appears to be in the driver’s seat, so to speak, with the incoming administration. That could be good news for Tesla shareholders as well, and Ives’ price target on Tesla stock reflects that.
