Bank of America: Trump's victory is beneficial for Tesla to consolidate its market position in the U.S. and advance autonomous driving, raising the target price to $350
With the conclusion of the U.S. election, Bank of America stated that Trump's victory would be beneficial for Tesla, assigning a "Buy" rating and raising the target price from $265 to $350. The bank noted that, firstly, Trump's plans to relax environmental regulations are seen as incentives for other automakers to further slow down the development of electric vehicles. The decline in electric vehicle production is viewed as helping Tesla maintain its position in the U.S. electric vehicle market, especially as the company plans to launch new models at more affordable entry prices. Additionally, Bank of America believes that under Trump's administration, the review of autonomous driving may be less stringent. Analyst John Murphy emphasized that Musk proposed a national standard for regulating autonomous vehicles, and the Trump administration is open to this. He wrote, "This could make it easier for Tesla's Robotaxi business, which is planned to launch in 2025, as this business currently requires approval from individual states."
According to the Zhitong Finance APP, as the U.S. election concludes, Bank of America stated that Trump's victory would be beneficial for Tesla (TSLA.US), assigning a "Buy" rating and raising the target price from $265 to $350.
The bank noted that, first, Trump's plan to relax environmental regulations is seen as an incentive for other automakers to further slow down the development of electric vehicles. The decline in electric vehicle production is viewed as helping Tesla maintain its position in the U.S. electric vehicle market, especially as the company plans to launch new models at more affordable entry prices.
Additionally, Bank of America believes that under Trump's administration, the review of autonomous driving may be less stringent. Analyst John Murphy emphasized that Musk proposed a national standard for regulating autonomous vehicles, and the Trump administration is open to this. He wrote, "This could make it easier for Tesla's Robotaxi business, which is planned to launch in 2025, as this business currently requires approval from individual states."