Shares of Tesla (TSLA) rose an additional 4% on November 22 and are approaching a new 52-week high as the post-election rally in the electric-vehicle maker’s share price continues.
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TSLA stock is now up more than 60% since the end of October, with most of that gain coming since Donald Trump won the U.S. presidential election on November 5. The company’s share price is now up 42% on the year, with all that gain coming in the past few weeks. The share price is nearing a 52-week high of $361.53.
The stock continues to rally as Tesla CEO Elon Musk becomes more enmeshed with Trump’s government and transition team. After stumping for Trump on the campaign trail, Musk has been tasked by Trump with finding efficiencies and cutting waste within the U.S. federal government in Washington, D.C.
EV Credits
In addition to Musk’s relationship with Trump, TSLA stock has also gotten a boost in recent days from reports claiming that electric vehicle tax credits may not be cancelled under the Trump administration as had been feared.
The automotive lobbying group Alliance for Automotive Innovation is reportedly leading efforts to keep the EV purchase tax credits. The incentives, which takes up to $7,500 off qualifying electric vehicle purchases, helps to drive sales.
Analysts, investors and consumers had been worried the credits would be eliminated by Trump. The ultimate fate of the credits is not yet known, but lobbying efforts to keep them appears welcomed by investors.
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 11 Buy, 14 Hold, and nine Sell recommendations made in the last three months. The average TSLA price target of $232.64 implies 34.01% downside risk from current levels.
Read more analyst ratings on TSLA stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
