Elon Musk‘s recent endorsement of former President Donald Trump could have significant implications for Tesla Inc. TSLA, according to veteran tech analyst Gene Munster.
What Happened: Munster, a tech analyst at Deepwater Asset Management, believes that Musk’s endorsement of Trump could potentially influence Tesla’s future.
“This endorsement, while it was predictable and obvious, it does hold some weight if [Tesla] can get a favorable environment around the government,” Munster said in an interview with CNBC’s Last Call.
Munster emphasized that a favorable government environment could facilitate the deployment of more Full Self-Driving (FSD) vehicles, a key goal for Tesla. This, in turn, could positively impact Tesla’s stock.
Trump’s stance on Tesla has been a topic of discussion among investors. During his first administration, the government rolled back over 100 environmental policies, according to a report by The New York Times in 2021.
Why It Matters: Musk’s relationship with Trump has been a subject of interest. In March, Musk announced that he would not be financially supporting either Trump or current President Joe Biden after a reported private meeting with Trump.
However, in June, Musk revealed that Trump is a big supporter of electric vehicles, despite his public criticism of the industry. Musk also disclosed that Trump frequently calls him, although the reason for these calls remains unclear.
Following a shooting incident at a Trump rally on Saturday, Musk endorsed Trump and disclosed that he had faced similar threats in the past year.
Musk has reportedly committed to allocating $45 million per month to a new super political-action committee in support of former President Trump‘s potential 2024 presidential campaign. However, Musk responded to the WSJ report on X by sharing an image of a human-legged gnus with the text, "Fake Gnus," displayed on it.
Price Action: Tesla stock closed at $252.64, marking a gain of 1.78% on Monday. In premarket trading, the stock was up 1.24% at the time of writing. Year-to-date, Tesla has seen a rise of 1.70%, according to data from Benzinga Pro.
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Photos courtesy: Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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