Elon Musk, the CEO of Tesla, has been appointed as one of the two leaders of President-elect Donald Trump’s Department of Government Efficiency (DOGE). This move, along with Vivek Ramaswamy, has sparked a lot of interest and speculation among analysts and investors. One such analyst, Dan Ives from Wedbush, has been looking into whether this new role will have a positive or negative impact on Tesla, which has seen a 50 percent increase in its stock value over the past month.
Ives, who is known for being a Tesla bull and recently raised his price target on the stock to $400, believes that Musk’s involvement in the Trump White House will ultimately benefit Tesla. Contrary to concerns that this new responsibility might take away from Musk’s focus on the electric vehicle (EV) maker, Ives believes that it will actually streamline Tesla’s artificial intelligence (AI) initiatives.
In a note to investors following the announcement of Musk’s new role, Ives stated that Musk will have a significant role in the Trump White House across various federal agencies. He emphasized that this position does not require Congressional approval and will not affect Musk’s CEO roles at Tesla and SpaceX. This reassurance from Ives has alleviated concerns about how Musk will balance his time between multiple responsibilities.
The concerns about Musk’s workload are not as prominent as they were when he acquired Twitter and transformed it into X. This time around, many are expecting Tesla’s Full Self-Driving and other AI projects to benefit from Musk’s relationship with the President-elect. Ives also anticipates that Musk will play a key role in new AI initiatives within the government, as well as discussions on China tariffs in the coming months.
While there are still some doubts about how Musk will manage his workload, Ives believes that the potential benefits for Musk and Tesla outweigh any negatives. He describes this move as a strategic decision by Musk to align himself with Trump, which could have long-term advantages for Tesla. Ives and Wedbush have set a $400 price target and an ‘Outperform’ rating on Tesla shares.
Overall, the consensus among analysts is that Tesla is likely to benefit from Musk’s new role in the Trump White House. The expectation is that Tesla’s AI initiatives will be strengthened, and Musk’s involvement in government discussions could open up new opportunities for the company. As Musk continues to make bold moves and expand his influence, investors are optimistic about Tesla’s future growth prospects.