Tesla CEO Elon Musk openly endorsed Trump after a failed assassination attempt on the former president at a campaign rally in Pennsylvania in mid-July.
Tesla, Inc. ($TSLA) shares have been on a tear amid the U.S. presidential election, and a three-day run-up has taken the stock tantalizingly close to the $300 psychological barrier.
Tesla CEO Elon Musk openly endorsed Trump after a failed assassination attempt on the former president at a campaign rally in Pennsylvania in mid-July.
Even ahead of this endorsement, Musk had made no bones about his displeasure at President Joe Biden’s policies, especially related to the undocumented immigrant issue. The Tesla CEO, who is the world’s richest man, has had a fractious relationship with the Biden administration.
The president has always left Musk and Tesla out of his EV conversations and he does not acknowledge Tesla as the EV industry leader.
Musk floated the America Political Action Committee (PAC) and used it as a vehicle to finance Trump’s campaign. He was very vocal about the need to elect Trump on X, the social-media platform he owns, and also campaigned along with Trump.
The billionaire has expressed desire to join the Trump cabinet as the one in charge of a department facilitating the efficiency of the government, focusing on cutting down red-tapism and expenditure.
Tesla added 3.5% on the election day before jumping 14.75% on Wednesday as Trump clinched a majority. Thursday’s rally has pushed the stock to its highest level since Sept. 2022.
As of 2:20 pm ET, the stock is up 3.23% at $297.84.
On the Stocktwits platform, Tesla has the highest watcher count (976,333) and it is now the fourth most active stock.
Retail sentiment toward Tesla stock has toned down a bit on Stocktwits, although it still stays “bullish” (62/100) accompanied by a “high” message volume.
The recent gains have pushed Tesla’s forward price/earnings ratio to 86.21 and the valuation is stretched.
The average analysts’ one-year price target for the stock is $207.83, according to TipRanks, which suggests scope for roughly 30% downside from the current level.
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