Tesla(US:TSLA) CNBCยท2024-12-11 17:39Core Viewpoint - Tesla shares have reached an all-time high following Donald Trump's election victory, driven by increased investor enthusiasm and a significant rally in November, marking a turnaround from earlier declines in 2024 [1][2][8]. Company Performance - Tesla's stock rose to an intraday high of $415, surpassing its previous peak of $409.97 from November 4, 2021, with a market value increase of approximately 66% this year, primarily since Trump's election [2]. - The stock experienced a 38% rally in November, representing its best monthly performance since January 2023 and the 10th best on record [2]. - In the first quarter of 2024, Tesla shares fell 29%, the worst quarterly performance since 2022, due to concerns over declining revenue amid increased competition from China [8]. Financial Insights - Tesla reported an 8% year-over-year revenue increase in its third-quarter earnings, slightly below estimates, but exceeded profit expectations [9]. - Musk projected vehicle growth of 20% to 30% for the next year, driven by lower-cost vehicles and advancements in autonomy, which was more optimistic than analysts' predictions [9]. Market Sentiment - Analysts have responded positively to Tesla's performance, with Craig Irwin from Roth MKM raising his price target from $85 to $380, citing Musk's support for Trump as a factor in boosting Tesla's credibility and demand [6]. - Goldman Sachs and other firms have also increased their price targets and ratings for Tesla, reflecting a more forward-looking market perspective, particularly regarding Tesla's AI opportunities [6]. Political Influence - Musk has actively supported Trump's campaign, contributing $277 million and engaging in efforts to register voters in swing states [3]. - Following Trump's victory, Musk is expected to play a significant role in the Trump administration, potentially influencing federal agency budgets and regulations, particularly regarding autonomous vehicles [4][5][7].