Tesla(US:TSLA) Finboldยท2024-11-12 13:17Core Viewpoint - Tesla's stock projection has been positively revised due to CEO Elon Musk's political affiliation with President-elect Donald Trump, leading to increased investor optimism and a potential $500 bull case for the company [1][2]. Stock Performance - Tesla's stock has experienced a 40% rally, reaching a two-year high, and surpassing Morgan Stanley's previous price target of $310 [2]. - The current share price is around $350, reflecting a significant increase from approximately $11x EV/EBITDA to 16x based on FY30 forecasts [3]. Analyst Insights - Morgan Stanley's Adam Jonas has raised the price target for Tesla to $500, indicating a valuation of just below 24x EV/EBITDA at that price [3]. - Wedbush Securities' Dan Ives has also increased Tesla's price target from $300 to $400, citing the potential for artificial intelligence and autonomous technology to thrive under the Trump administration, representing a $1 trillion opportunity for Tesla [4][5]. Market Dynamics - Tesla's stock closed at $350, up nearly 9% for the day, with a notable 40% increase over the past week [7]. - The stock has shown strong buying interest, breaking out from the $280-$290 resistance range, and could potentially test its previous all-time high of $414.50 [9]. Short Selling Impact - Since Trump's victory, short sellers have incurred losses of approximately $7.8 billion, with expectations of continued short covering due to the rally-induced short squeeze [9][10].