Trump's 2024 Presidential Election Win Could Boost Tesla And Big Tech Stocks, Analyst Says

Much against expectations of a nailbiter, the 2024 presidential election has produced  a clear winner. Donald Trump is all set to return for a second term in office with his victory in the key swing state of Wisconsin that put his tally above the 270 required for the win. 

Wedbush analyst Daniel Ives weighed in with his thoughts on the election outcome. “We would expect a very robust bullish market reaction,” he said, adding that it could be a clean red sweep. 

Boost For Big Techs

Ives expects a significant ramp-up in artificial intelligence initiatives from tech titans such as Microsoft Corp. ($MSFT), Amazon, Inc. ($AMZN), Alphabet, Inc. ($GOOGL) ($GOOG) and other players.

The U.S. government, specifically the Department of Defense, may undertake major AI initiatives, and this could serve as a major tailwind for companies such as Palantir Technologies, Inc. ($PLTR), he said. 

The analyst sees the new administration making major changes to President Joe Biden’s Inflation Reduction Act, a potential negative for companies such as Intel Corp. ($INTC).

Ives also raised the possibility of the Federal Trade Commission Chair Lina Khan exiting, and he sees this as a “huge catalyst” for more deal flow in the big tech landscape. Incidentally, the federal agency has been clamoring for a breakup of Google, citing the company’s search dominance. 

Advantage Tesla

Ives said the biggest positive from a Trump win is for Tesla and its CEO Elon Musk. While the potential removal of electric-vehicle subsidies could hurt other EV makers, it could hand down Tesla a relative advantage, the analyst said. 

The Musk-led company can thrive in a non-subsidized environment due to its scale and scope, he added.

Trump tariffs could dissuade the Chinese EV makers from flooding the U.S. market, keeping competitors such as Nio, Inc. ($NIO) and BYD Co. Ltd. ($BYDDY) ($BYDDF) at bay, Ives said.

He also sees Tesla and Google’s Waymo benefiting from a potential acceleration of the full self-driving and autonomous initiatives. 

“We believe a Trump win could add $40-$50 per share to Tesla's stock if autonomous/FSD is accelerated starting in 2025 and a tailwind for Cybercab,” he said, adding that this could send the company's market cap shooting past $1 trillion.

As of 7:34 am ET in premarket trading, the Invesco QQQ Trust ($QQQ), an exchange-traded fund comprising the biggest non-financial tech stocks, climbed 1.65% to $500.31. Tesla climbed 12.01% to $281.65.

Read Next: Super Micro Stock Tanks In Premarket Following Lackluster Preliminary Q1 Results, Delisting Threat: Retail Mood Mixed

For updates and corrections email newsroom@stocktwits.com 

Share

·

Add us on