Tesla could reach $1 trillion in market cap under a Trump win, says analyst Dan Ives

A possible Trump victory could spell massive gains for Tesla over the coming months, according to Wedbush Securities’ Dan Ives. The analyst thinks the electric vehicle maker can pass the $1 trillion market cap threshold if the Republican nominee comes out on top in the U.S. presidential election. “It’s a dream scenario for any Tesla bull,” he said on CNBC’s “Your Money Your Vote” early Wednesday. “This could ultimately add $40 to $50 per share to Tesla’s stock right off the bat, and we could now be talking about a $1 trillion [or] $1.5 trillion market cap for Tesla.” Tesla, which is up just 1% for the year, has a market cap of $807.1 billion through Tuesday’s close. Shares of the electric vehicle maker surged more than 13% in the premarket Wednesday as NBC News projects the Republican nominee has taken a sizable lead over Vice President Kamala Harris in Electoral College votes. TSLA YTD mountain TSLA, year-to-date Ives cited less regulation under a potential Trump administration as a key tailwind for Tesla, as he believes that Trump ending a tax credit for electric vehicles may actually be a positive for the company in terms of scale and scope. Additionally, the analyst pointed to Trump fast-tracking autonomous full self-driving as another catalyst for growth. He sees the Cybercab, an autonomous vehicle unveiled by Tesla recently, getting “pulled forward” by about one year. Musk has said he hopes to be producing the vehicle by 2027 . “Ultimately, I think Tesla is the most undervalued AI name in the market,” he also said. “This is just more and more going to unlock that opportunity for Tesla and Musk.” His bullish stance comes as Wall Street analysts are generally split on the stock. Among the 54 analysts covering the stock, 22 have a strong buy or buy rating, while 20 have taken a hold rating, LSEG data shows. Meanwhile, its average price target implies more than 12% downside from Tuesday’s close.