Trump win would be ‘huge positive’ for Tesla, says Wedbush

With a Donald Trump win for the White House looking very likely, Wedbush expects a “very robust bullish market reaction.” The biggest positive from a Trump win would be for Tesla (TSLA) and its CEO Elon Musk, the analyst tells investors in a research note. The firm believes a Trump presidency would be an overall negative for the electric vehicle industry, saying rebates and tax incentives are likely to get pulled. However, for Tesla, this is a “huge positive,” contends Wedbush. The firm believes Tesla has scale and scope that is unmatched in the electric vehicle industry. This dynamic could give Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese electric vehicle players like Nio (NIO) from flooding the U.S. market over the coming years, the firm contends. Wedbush says a Trump win could add $40-$50 per share to Tesla’s stock if autonomous driving is accelerated starting in 2025 and a tailwind for Cybercab.