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Tesla Shares Hit Record High at $424.77, Adding $515B to Market Cap

Dec 12, 2024, 03:24 AM

Tesla Inc. shares have surged to a new all-time high, closing at $424.77, marking a 5.9% increase on the day. This jump reflects a six-week rally, adding over $515 billion to the company's market capitalization since the U.S. presidential election on November 5. The surge is attributed to optimism surrounding President-elect Donald Trump's potential policies that could benefit Tesla's autonomous driving ambitions. Elon Musk, Tesla's CEO, has been closely aligned with Trump, having been appointed to co-lead a new Department of Government Efficiency. This political support, combined with expectations of regulatory changes favoring self-driving vehicles, has fueled investor enthusiasm. Tesla's shares have now risen 69% since the election, surpassing its previous record set in November 2021. Analysts are particularly bullish on Tesla's Robotaxi segment, with Cantor Fitzgerald analyst Andres Sheppard raising his price target to $365 from $255, citing Trump's plans to develop a federal framework for self-driving vehicles.