Tesla’s post-election rally has caused the stock to soar past Wall Street’s price targets, adding a Donald Trump–size layer to the debate about how to value the notoriously volatile stock. In order to better inform their projections, analysts at Bank of America decided to put boots on the ground and visited the electric vehicle giant’s gigafactory in Austin. What they saw left them bullish about the company’s long-term prospects.
Tesla shares have jumped over 50% since Election Day, largely propelled by sentiment about CEO Elon Musk’s future influence, real or perceived, inside the incoming administration. Analysts have an unusual challenge in assessing how Musk’s relationship with the president-elect will impact Tesla. When BofA revealed it had increased its price target for the stock from $350 to $400, however, their reasoning didn’t mention politics.
