Electric vehicle (EV) company Tesla (TSLA) underwent a major increase in market capitalization in November thanks to the results of the 2024 Presidential Election. The EV giant’s market cap rose 38.1% to $1.1 trillion during the month, with shares currently trading at $355.72.
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Those gains resulted in Tesla seeing the largest increase in market cap among the major companies on the public market. To put that 38.1% gain in perspective, Walmart (WMT) was its closest rival, with a 12.9% increase to $743.5 billion, followed by JPMorgan Chase (JPM), rising 12.5% to $703 billion.
Trump Served As a Catalyst for TSLA Stock
Incoming President Donald Trump’s win in the 2024 election was one of the biggest factors behind Tesla’s market cap increase in November. Tesla CEO Elon Musk has closely tied himself to Trump by supporting the President-elect on his X, formerly Twitter, platform.
To accompany that, Musk has been nominated as the head of Trump’s planned Department of Government Efficiency (DOGE). This new organization would seek to reduce government spending by making major cuts across various departments. The plan has even garnered bipartisan support, with Democrat Bernie Sanders backing DOGE.
Finally, a Trump presidency could directly benefit Tesla due to regulatory changes. Among these are plans to reduce restrictions around self-driving vehicles. This is one of Tesla’s prominent focuses, and the company could soon introduce fully autonomous EVs.
Is TSLA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Tesla is Hold based on 11 Buy, 14 Hold, and nine Sell ratings over the last three months. With that comes an average price target of $233.67, a high of $400, and a low of $24.86. This represents a potential downside of 34.5% for TSLA shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
