If Tesla Stock Hits All-Time Highs In 2025, Will It Be Driven By Trump-Musk Relationship? Benzinga Readers Say This

Tesla Inc TSLA has soared since Donald Trump won the 2024 presidential election and Benzinga readers think that the momentum could carry into 2025 for the electric vehicle company.

What Happened: Tesla CEO Elon Musk endorsed Trump for president in the 2024 election and helped campaign for his victory. While the move may have been risky, given Trump's past criticism of electric vehicles, it appears to have paid off for Tesla's stock price and analysts' optimism for the future.

Tesla stock closed at $251.44 on Nov. 5, the day of the 2024 presidential election. With Trump being declared the victor in the early morning hours, the stock opened at $284.67 on Nov. 6 and closed the day trading at $288.53, up 14.8%.

The stock was volatile in the after-hours trading markets and overnight trading market hours for brokers offering customers the option.

Since Election Day, the stock is up 29.2%, posting the majority of its +32.4% year-to-date gains over the last two weeks.

Benzinga recently polled readers to see if the momentum can continue and carry Tesla to new all-time highs.

"Will Trump and Musk's close ties help drive Tesla to new all-time highs in 2025?" Benzinga asked.

The results were:

• Yes: 62%
• No: 14%
• Yes, Tesla will reach all-time high in 2025, but not because of Musk/Trump friendship: 24%

The poll found that the majority of readers think the friendship between Musk and Trump will take Tesla stock to all-time highs in 2025. Twenty-four percent of poll respondents think Tesla stock will hit all-time highs in 2025, but not due to Trump.

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Why It's Important: The biggest takeaway from the poll is that whether or not it's because of Trump and Musk being friends, 86% of readers believe Tesla stock will hit all-time highs in 2025.

The current all-time high for Tesla stock is $414.50, hit on Nov. 7, 2021. To reach the all-time high, which last occurred three years ago, Tesla stock would have to gain an additional 27.6% from today's share price of $324.96.

Trump has spoken negatively about electric vehicles many times in the past, and many believe that he will remove federal credits for American buyers of EVs.

While the ending of federal credits for consumers could hurt the overall electric vehicle sector, analysts see the move having a lower impact on Tesla due to its profitability and scale. Instead, the move could hurt Tesla's competition and improve the company's market share in the sector.

One item to watch is if Trump reverses course in his comments that he will ban autonomous vehicles from the road. Trump recently made those comments around the same time that Tesla showed off its Cybercab at its We Robot event in California.

Tesla is betting big on robotaxis, and a government that isn't friendly toward the vehicles could harm Tesla's stock price and future growth.

Musk's friendship with Trump could also help his other companies, like social media platform X and space company SpaceX. While this won't be a positive for Tesla, it could help with Musk's companies overall and perhaps trickle down to brand awareness for Tesla and a more favorable environment for Musk in the United States overall.

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• Tesla Short Sellers Down $8 Billion Since 2024 Election — And There Could Be More Pain Ahead

The study was conducted by Benzinga from Nov. 6 through Nov. 7, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 112 adults.

Image created using artificial intelligence via Midjourney.