Since Donald Trump’s victory over Kamala Harris yesterday, Big Tech CEOs have rushed to congratulate him. This suggests a highly bullish outlook for most tech stocks as Trump takes office. The list of business leaders expressing positive sentiments following his victory includes Amazon (AMZN) founder Jeff Bezos, Alphabet (GOOGL) CEO Sundar Pichai, Meta Platforms (META) CEO Mark Zuckerberg, and Tesla’s (TSLA) Elon Musk.
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Is a Trump Win Good for Tech Stocks?
Given the way most tech stocks have responded to Trump’s victory, it’s clear that the market is reacting positively. Both Amazon and Alphabet closed out trading yesterday up 4%, while Microsoft rose by 2%. Meta did not experience this momentum, though, and dipped into the red by the close of markets. However, Tesla stock surged 15% on Trump victory momentum.
While shares dipped today in pre-market trading, it is clear that Trump’s win is regarded as highly bullish for Tesla. Throughout the campaign, Musk worked closely with Trump during his 2024 campaign, and Trump has stated that he would be “secretary of cutting costs” in his administration. A role in the president’s cabinet could enable Musk to roll back regulations on his companies, spurring significant growth for Tesla and SpaceX.
The Big Tech CEOs who rushed to congratulate Trump likely want to remain on his good side. His vice president-elect, JD Vance, has expressed support for breaking up Big Tech monopolies, citing Google as a company he would target. However, given the Republican Party’s highly pro-big-business and anti-regulation stances, it is unlikely that this would happen. Most leading tech stocks will likely perform well under Trump.
BofA Analyst Raises Price Target on Tesla
Tesla has outperformed many peers since Trump’s victory, though Wall Street remains cautious, with analysts assigning a Hold consensus on TSLA stock. After a 30% rally in its share price, the average TSLA price target of $207.83 suggests 28% downside potential. The only bullish take comes from John Murphy of BofA Securities, who raised his price target from $265 to $350, citing Trump’s political shift as a catalyst, implying a 21% upside potential for the stock.
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The only analyst to issue a bullish take on Tesla following Trump’s victory is John Murphy of BofA Securities, who raised his price target from $265 to $350, citing the political shift as a likely catalyst for TSLA stock. This prediction implies an upside potential of 21%.
