Tesla Stock Skyrockets As Musk Secures Secret Self-Driving Deal with Trump Administration

Well, it’s no secret Tesla shares are mooning towards the end of the year. Shares surged over 6% on Monday, hitting a high of $463, and are now up a blistering 75% since Election Day. The reason? Optimism around its autonomous driving ambitions and a little extra juice from the Trump administration’s regulatory shake-up. Wall Street analysts are scrambling to keep up with the rally—kind of like, for the sake of this article, trying to catch a Model S in a dang Prius.

(Source: Giphy) 

In short, leading the optimist bunch is none other than Wedbush’s Dan Ives, Tesla’s unofficial hype man. He just raised his price target to $515 from $400—a Street high—and dropped a “bull case” of $650. Why the sudden love? Ives sees Trump’s deregulation spree as a “game changer” for Tesla’s Full Self-Driving (FSD) and AI efforts, which he thinks could be worth $1 trillion. That’s right—just the self-driving side hustle could be a trillion-dollar beast. Meaning, love him or hate him, Musk's dreams of robotaxis might not be as ludicrous as skeptics think. 

(Source: Reuters) 

What’s more, is that the bromance we didn’t know we needed (Trump + Musk) led by Trump’s administration is fast-tracking a federal framework for self-driving vehicles, which essentially translates to fewer hoops for Tesla to jump through. And fewer hoops = faster rollout of FSD. Case in point: Reuters reported last week that the National Highway Traffic Safety Administration is considering ditching a rule requiring automakers to report autonomous driving system crashes. For Tesla, which has logged over 1,500 such incidents, that’s a regulatory headache that could soon disappear. Less paperwork, fewer PR nightmares—it’s basically a win-win for Elon.

(Source: IBD) 

On the geopolitical side to this, Ives thinks Musk’s charm offense could pay off big in the U.S.-China trade talks. If Tesla gets tariff carve-outs for its Shanghai-built EVs, it could boost margins and keep the company’s China operations humming. And let’s not forget, Tesla’s China delivery numbers are already strong. Add some tariff relief, and valuations could go even more full-send then they already are. And all the Musk mouth breathers said Amen. 

(Source: Giphy) 

Now with that said, Tesla’s current market cap is sitting pretty at $1.5 trillion, but Ives is calling for a leap to $2 trillion within 12 to 18 months. That would push the stock to $625 by mid-2026. The confidence, again, comes from the fact that Tesla’s FSD software is steadily improving, inching closer to Level 5 autonomy (translation: cars that don’t even need steering wheels), and Trump’s regulatory tailwinds could speed up its time to market. Meanwhile, competitors like Alphabet’s Waymo are still busy trying to make driverless taxis happen. Tesla’s vision? Full autonomy for the masses, not just for people hailing rides in Silicon Valley.

In addition, while the autonomous driving headlines steal the show, Tesla’s China operations continue to be a quiet MVP. Strong demand and streamlined production at the Shanghai Gigafactory have investors bullish on Tesla’s ability to dominate in the world’s largest EV market. If Musk can keep the momentum going in China while trimming costs, it’ll be tough for the skeptics to argue with the numbers.

(Source: The Guardian) 

But, but, but… still, Tesla’s stock is already trading higher than Wall Street’s most optimistic price targets. Before Ives’ latest bump, no one had a target above Tesla’s current levels. That’s rare air, friends—meaning investors are betting on a future even rosier than what analysts are projecting (shocker). 

In the end, between Musk’s growing influence in Washington, the autonomous boom, and China’s insatiable appetite for EVs, Tesla’s future looks brighter than a fully charged Powerwall on a sunny day—and let’s be honest, probably just as overhyped. So whether you’re a card-carrying member of the Musk fanboy club or just convinced he’s running a real-life episode of Silicon Valley, the Musk joyride is feeling a resurgence–whether you like it or not. 

(Source: Giphy) 

As always, filter this through a brain-cell and don’t go YOLOing into Tesla just for the hell of it. Place your bets accordingly, and as always, stay safe and stay frosty, friends! Until next time… 

P.S. On Saturday night, I took my wife out to dinner, and while it was a fantastic evening with the woman I love, the bill came in at $220 (we love premium steak here in Oklahoma). However, on the drive home, it hit me… I could’ve bought 11 frigging memberships to Stocks.News premium with that bill. ELEVEN. The crazy part? Unlike those friggin’ steaks I bought, just one Stocks.News premium membership actually has the potential to put money back into my pocket. 

Now, don’t get me wrong, I wouldn’t trade that date night for anything (happy wife, happy life, right?). But seriously, think about it: That’s how ridiculously affordable Stocks.News premium is. Less than the cost of a fancy night out, and it’s packed with tools, insights, and strategies designed to help you make better financial moves.

Meaning, if you’re not in Stocks.News premium yet, what are you doing? For just $20 a month—less than what you’d shell out for a decent appetizer—it’s time to rethink where your dollars are going. Click here to see all the details including what Stocks.News premium gets you for just $20 A MONTH…

Stocks.News holds positions in Tesla and Alphabet (Google) as mentioned in the article.