Here's why the Fed could trigger Tesla's next massive rally today

Federal Reserve's Rate Cut Impact - The Federal Reserve is expected to make its third consecutive rate cut of the year on December 18, which could act as a catalyst for further growth for Tesla [1] - Historical data suggests that Tesla's stock price tends to rally during low-interest-rate environments, as seen in 2019–2020 when TSLA's share price skyrocketed amid monetary easing [3][5] - Lower interest rates reduce borrowing costs for companies and consumers, encouraging spending, investment, and innovation, which benefits growth stocks like Tesla [5] Tesla's Stock Performance and Recent Developments - Tesla's stock price closed at $477 on December 17, up over 3% for the day, but pre-market trading on December 18 saw a 3.45% drop to $464 [2] - The pre-market losses coincided with reports of Tesla's Shanghai plant manager, Song Gang, leaving the company [2] - Tesla is targeting the $500 mark, fueled by a post-election rally and impressive Q3 earnings results [2] Tesla's Growth Potential and Fundamentals - Tesla thrives in low-interest-rate environments due to its capital-intensive business model and reliance on future growth expectations to justify its valuation [6] - The company is expected to benefit from friendly regulations under a Donald Trump administration, particularly for autonomous driving technology [8] - Tesla's advancements in artificial intelligence (AI) are likely to act as another trigger for growth [8] Analyst Outlook and Market Cap Projections - Mizuho Securities analysts raised Tesla's price target to $515 from $230, a 123% upside, driven by favorable autonomous driving regulations, potential cost advantages under Trump policies, and a strong product pipeline [9] - Wedbush's Dan Ives also raised his target to $515, projecting Tesla's market cap to hit $2 trillion by 2025, highlighting a $1 trillion AI and autonomous vehicle opportunity [10] - Despite Tesla's current market cap of $1.5 trillion, concerns remain about the stock pricing in Musk's potential influence in the upcoming administration and the unrealized impact of full self-driving technology and AI [11]