Elon Musk All In on Trump, Wall Street speculates Model 2, Tesla stock price stabilizes

Wallstreetcn
2024.07.17 01:03
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Analysis shows that Musk's support for Trump has played a role in pushing up Tesla's stock price, which helps Tesla gain more recognition among conservative groups. In addition, the delay in the release of Robotaxi may indicate that Tesla will showcase the next generation electric vehicle Model 2

On Tuesday, Tesla's stock price rose, then fell back from its high, ultimately closing up 1.6% at $256.56 per share. So far this year, Tesla's stock price has risen by 3.28%.

Analysts believe that the reasons for the stock price increase are noteworthy. One is Musk's latest political inclinations, and the other is the upcoming Model 2 that has caught investors' attention.

Previously scheduled for August, the robot taxi RoboTaxi event was postponed to October, causing Tesla's stock price to drop by 8.4% last Thursday.

Tesla CEO Elon Musk explained on social platform X on Monday that the reason for the delay was the need to make design changes to the front of the robot taxi, adding that additional time was needed to "allow us to show some other things."

Baird analyst Ben Kallo stated that the delay in the event may mean that Tesla will showcase its low-priced next-generation electric vehicle Model 2. Model 2 may be launched for sale in early 2025, but investors have not yet seen its prototype. This explanation has somewhat reassured investors, with analysts suggesting it may be one of the reasons for the stock price rebound.

On the political front, Musk has recently openly expressed his support for and admiration of Trump on social media. After Trump was attacked, he wrote: "I fully support President Trump and wish him a speedy recovery."

Analysts have pointed out that Musk's support for Trump has also played a role in driving up Tesla's stock price. Trump has been critical of electric vehicles in the past, and Musk's support may help Tesla gain more acceptance among conservative groups. A recent poll showed that about two-thirds of conservative voters would not consider buying an electric vehicle, while about two-thirds of liberal voters would.

Clearly, Musk's support for Trump goes beyond just words. According to reports, Musk donates $45 million to the Republican Political Action Committee each month, which will be used to support Trump's re-election campaign. In response, Musk posted a picture in the comments section with the caption "fake impala". Some analysts have said that Musk "seems to deny" this.

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  • Image 3Analysts believe that Musk's full support for Trump's candidacy may be favored by the market, but it also carries the risk of alienating liberal voters
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