- Wall Street indices open today stock market session higher; US500 rises above 6,000 points
- Euphoric rises on Tesla shares; company trades up 7% after upgraded recommendation at Wedbush Securities
- Strong share price increases for companies linked to the cryptocurrency market. Coinbase (COIN.US) exchange gains 15%
- Today is the 'Veterans Day' national holiday in the US - bond trading is halted, but Wall Street company listings are open during standard hours
U.S. assets are gaining early in the session; both Wall Street and the dollar are on an upward surge. The dollar index is up nearly 0.3% today. Tesla's shares are trading up more than 8%, and the company's capitalization has surpassed $1 trillion, with a price/earnings ratio indicating close to 80. Investors are paying a sizable premium for Musk's company's stock, likely expecting help from the new administration in introducing autonomous driving technology in the US, as well as tariffs that could support the company by hitting competitors with still unprofitable electric car production.
US500 (D1 interval)![]()
Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appU.S. equities are posting sizable gains for the most part. The pharmaceutical and financial sectors are doing very strongly; stocks from the insurance sector are similarly up. Weakness is evident in the mining sector. Source: xStation5
Tesla records record highs
Wedbush is raising its target price for Tesla shares, taking a new stance on optimism over Trump's win. The financial and investment services firm raised its target price to $400 from the previous $300.
- It is likely that Donald Trump's recent victory in the US presidential election will have a positive impact on Tesla's autonomous and artificial intelligence (AI) business. Wedbush predicts that Trump's administration will accelerate the development of fully autonomous driving (FSD) and artificial intelligence technologies by simplifying regulations that previously hindered the company's progress in the US market.
- The analysis estimates that opportunities related to artificial intelligence and autonomous vehicles represent an additional $1 trillion in potential for Tesla. Indeed, changes in the federal regulatory environment could be a breakthrough for Tesla's autonomous and artificial intelligence in the coming years.
- Mexico's economy minister, Marcelo Ebrard, is also expected to seek talks with Musk about establishing an electric car factory in northern Mexico. SEB Research analysts stressed the importance of real and faster economic growth in the US for Tesla.
Tesla shares (D1 interval)
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Source: xStation5
Space stocks optimism
According to investors, Elon Musk's chances of sending a mission to Mars have increased, with the election of Trump. The nation's Artemis space program (a NASA initiative using SpaceX's Starship) is expected to focus on the Moon and Mars, improving demand for components from some manufacturers.
The shift is in line with Musk's vision and is expected to accelerate the development of SpaceX's Starship rockets. Speculation around the heightened technological rivalry with China, under the Republican administration has improved sentiment in the space company sector including Redwire (RDW.US), where we see a 'saucer' formation pattern; the company has cleared 2022 financial problems and reports an improved order backlog.
Source: xStation5
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