Tesla Bull Says Trump Win Is Negative For EV Industry, But 'Potential Positive' For Elon Musk-Led Company

Following Tesla, Inc.’s (NASDAQ:TSLA) above-consensus second-quarter deliveries number, bullish analysts suggest turnaround may have begun at the electric vehicle maker. Wedbush analyst Daniel Ives on Thursday weighed on how a potential second term for former President Donald Trump would influence the fortunes of the Elon Musk-led company.

2M Goal Will Be Hit: With the price cuts in the rearview mirror and demand stabilizing globally for EVs, Tesla is on track to achieve a 2 million annual trajectory over the coming quarters, said Ives in a note. He noted that comparisons get easier in 2025. Tesla has reported two straight quarters of sales decline for now.

The Street recognizing Tesla as the most “undervalued AI play” in the market is key for the stock, the analyst said. The EV maker’s shares have gained over 44% since June 25 and have been on an 11-session winning streak, with the most ever being a 13-session run in June last year.

AI Future: “A historical Robotaxi Day ahead for Musk and Tesla on August 8th that will lay the yellow brick road to FSD and an autonomous future,” Ives said. The analyst estimates that the AI story alone could be worth $1 trillion to the broader Tesla story over the coming years.

The key to Tesla reclaiming its $1 trillion valuation is the “autonomous and FSD vision taking hold for Tesla which
appears to be inflecting with this latest FSD v12.4 and now China FSD testing underway,” he said.

See Also: How To Buy Tesla Stock

Trump Impact: Following the first presidential debate held on June 27, in which President Joe Biden turned in a dismal performance, the odds of a Trump victory have increased. “We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled, however for Tesla we see this as a potential positive,” Ives said.

But Tesla is relatively better positioned, according to the bullish analyst. “Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment,” he said. Additionally, higher China tariffs would continue to push away cheaper Chinese EV players such as BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) and Nio, Inc. (NYSE:NIO) from flooding the US market over the coming years.

Bullish View Intact: Ives maintained an Outperform rating and a $300 price target for Tesla stock. The price target suggests that the stock has roughly about 14% upside potential over the year.

In premarket trading on Thursday, Tesla edged down 0.05% to $263.13, according to Benzinga Pro data.

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