Akin to high-stakes poker, Elon Musk wagered the very future of Tesla and the rest of his expansive business empire by going all-in on Trump. Now, as his fortunes rise along with those of the president-elect, Wall Street expects Tesla to benefit in one way or another.
To wit, the Bank of America (BofA) has penned an interesting investment note today, arguing that Tesla stands to gain at the margins from a Trump victory and Elon Musk's pivotal role in securing it.
While BofA analysts concede that Tesla’s position should remain largely neutral to most of Trump's envisioned policy changes, they do believe that the EV giant might see potential upside vis-à-vis "the federal regulation of autonomous vehicles and FSD, which aligns with Elon Musk’s push for a national standard for self-driving."
What's more, given Elon Musk's likely elevated status of the efficiency czar within the Trump administration 2.0, Tesla might see reduced scrutiny going forward:
"Tesla’s prospects may also benefit from a shift away from the aggressive scrutiny seen under the current administration."
BofA analysts go on to add:
"The Trump administration’s approach could create a more favorable regulatory landscape, potentially accelerating Tesla’s Robotaxi deployment in 2025 by easing state-by-state regulatory burdens."
For the benefit of those who might not be aware, Elon Musk had announced during the Cybercab reveal event on the 10th of October that the "completely autonomous" unsupervised FSD for Models S, 3, X, and Y would start rolling out next year in Texas and California. Moreover, Elon Musk had said during Tesla's Q3'24 earnings call that the Cybercab would reach volume production of 2 million units per year in 2026.
Interestingly, Goldman Sachs analysts recently appeared baffled by the disconnect between the crowd-sourced FSD performance data, which currently shows around 100 miles per critical intervention, and Tesla's tall claims of reaching "10K+ miles per critical intervention this year or next."
Coming back, BofA analysts believe that Tesla might also benefit from relaxed emissions standards in the Trump administration 2.0 and stringent restrictions on China-made EVs:
Any relaxation in environmental mandates could slow traditional automakers' transition to EVs, providing Tesla room to expand its market share in the U.S. EV sector, particularly as it rolls out more affordably priced models. Additionally, a tougher stance on China may restrict new competitors from entering the U.S. market, supporting Tesla’s positioning in the EV space.
Accordingly, BofA has increased its Enterprise Value to Sales multiple for Tesla from 8x to 10x, which corresponds to a stock price target of $350 per share.
Finally, BofA analysts observe:
"Musk’s public alignment with Trump is another factor to watch, as it could yield additional, albeit uncertain, benefits for Tesla."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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