Trump may bring ‘large terminal value benefits’ for Tesla, says Deutsche

Deutsche Bank says the magnitude of Tesla’s (TSLA) post-election over the past week has been surprising. Since election night, Tesla has added over $300B of market cap, crossing the $1 trillion level for the first time since early 2022, the analyst tells investors in a research note. Beyond attributing the price action to tactical factors like retail exuberance and short covering due to lack of near-term negative catalysts, Deutsche sees “potential large terminal value benefits” to Tesla’s efforts in auto, robotaxi, and even humanoid robotics from a Trump win, the analyst tells investors in a research note. The firm believes the market reaction supports the view the new administration’s approach toward CEO Elon Musk’s endeavors “will likely be much different going forward.” Deutsche could envisage the new administration setting robotaxi standards at the national level to make approval of deployment faster. And should the Inflation Reduction Act get repealed or changed, or extra tariffs get levied for imported parts, Tesla’s relative competitive position would only strengthen, the analyst contends. Deutsche has a Buy rating on Tesla with a $300 price target