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Tesla’s (NASDAQ:TSLA) Market Cap Soars Past the $1T Mark
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Tesla’s (NASDAQ:TSLA) Market Cap Soars Past the $1T Mark

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The market cap of electric vehicle maker Tesla has once again crossed above the $1 trillion mark as its post-election rally continues.

The market cap of electric vehicle maker Tesla (TSLA) has once again crossed above the $1 trillion mark as its post-election rally continues. Interestingly, this makes Tesla more valuable than the next 10 largest auto stocks combined. Investors are pricing in the positive impact that a Trump presidency would have on the EV company, especially since Elon Musk played a major part in Trump’s campaign by spending $130 million.

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Indeed, Bank of America analysts suggested that the Trump administration may ease scrutiny on automated driving, which would align with Elon Musk’s push for a national self-driving regulation standard. In addition, they noted that Trump’s expected relaxation of environmental regulations could cause other automakers to slow down their EV production. This would give Tesla an advantage by allowing it to break away further from the competition in terms of innovation.

This sentiment was echoed by Wedbush analyst Dan Ives earlier this week, who noted that Tesla has the scale and scope to outperform peers in a non-EV subsidy environment. Also, Trump’s desire to slap tariffs on Chinese imports would help prevent cheaper Chinese EVs from flooding the U.S. market. As a result of these potential developments, Tesla stock has rallied over 31% during the past five days with no signs of slowing down.

Is TSLA Stock a Buy?

Overall, analysts have a Hold consensus rating on TSLA stock based on 11 Buys, 16 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average TSLA price target of $207.83 per share implies 34.3% downside risk.

Read more analyst ratings on TSLA stock

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