Tesla’s Swashbuckling Rally Set to Continue as Regulator Support and Trump Ties Enhance Growth Prospects
Tesla’s recent rally is unlikely to slow down, as a loosening of regulatory barriers in the autonomous driving space and Elon Musk’s close ties to President-elect Donald Trump are expected to drive growth over the next four years, according to a recent note from Mizuho.
The analysts at Mizuho have upgraded their rating on Tesla to outperform and set a price target of $515, up from $230, citing the favorable environment for the company’s expansion in autonomous technology.
The analysts expect Tesla to receive regulatory approval for its Full Self-Driving (FSD) technology to operate at Level 4 by 2025, which would significantly enhance its revenue potential. By 2030, FSD could generate approximately $62 billion in revenue, up from less than $1 billion today.
Additionally, Musk’s close relationship with Trump is expected to pave the way for further growth. The new administration’s policies, including potential consumer EV tax credits, place Tesla in a favorable position relative to its peers.
Moreover, Tesla’s lower EV cost structure and its more profitable electric vehicle roadmap, including upcoming models like the Model Q and Cybercab, are expected to outgrow global light vehicle production.
Overall, the outlook for Tesla appears bright, with the company poised to continue its swashbuckling rally as regulatory support and Trump ties drive growth over the next four years.
