Tesla’s AI Ambitions Get a Boost Under Trump Presidency
A potential Trump presidency could be a game-changer for Tesla Inc.’s (NASDAQ:TSLA) artificial intelligence initiatives, according to Wedbush Securities. Despite potential headwinds for the broader electric vehicle sector, Tesla’s AI ambitions could unlock a whopping “$1 trillion of incremental AI valuation” over the coming years.
A Strategic Bet on Trump
Dan Ives, a leading analyst at Wedbush Securities, believes that Tesla CEO Elon Musk’s alignment with Trump could prove “very bullish for Tesla’s AI/autonomous story.” During an appearance on CNBC’s Squawk Street, Ives stated, “We believe Trump in the White House changes the landscape for Elon Musk and Tesla.”
Mixed Outlook for the Broader EV Industry
While Tesla’s AI initiatives may thrive under a Trump presidency, the outlook for the broader electric vehicle industry appears mixed. Tesla’s second-quarter earnings call revealed that the incoming administration would likely eliminate EV subsidies and tax credits.
Tesla’s Established Market Position
Wedbush analysts attribute Tesla’s positive outlook to its established market position and manufacturing capabilities. They project Tesla’s stock could see a $40-$50 price increase under a Trump presidency, representing a potential upside of 16% to 20% based on current trading levels.
Other Tech Players to Benefit
Beyond Tesla, Ives anticipates significant AI initiatives that could benefit other major tech players, including Microsoft Corp., Alphabet Inc.’s Google, and Palantir Technologies Inc.
Tesla’s Standout Performance
Tesla Inc. showcased a standout performance on Wednesday, closing up 14.75% at $288.53, marking a significant single-day gain that brought its year-to-date rise to 16.15%. In contrast, key U.S.-based EV competitors struggled considerably, including Rivian Automotive Inc. (NASDAQ:RIVN) and Nio Inc. (NYSE:NIO).
A Period of Transformation
As Trump prepares to assume office as the 47th president of the United States, both the technology and automotive sectors may undergo significant transformations. With Tesla’s AI ambitions at the forefront, investors will be watching closely to see how the company’s stock performs under a Trump presidency.
Leave a Reply