The top line

Tesla shares rose again on Monday, extending their strong post-election gains, after its leader Elon Musk hitched a ride on President-elect Donald Trump’s efforts to secure a second presidential term, making simultaneously making Musk a much richer man, as one analyst suggested the perspective Musk’s close relationship with Trump has led to friendlier politics.

Key facts

Tangent

Accompanying Monday’s rally was an upbeat note from Wedbush analyst Dan Ives, one of the more outspoken voices on Tesla, who raised his firm’s price target for Tesla to $400, indicating upside of nearly 20% going forward. Ives, who has previously noted how policies such as looser regulation under Trump would help Tesla’s burgeoning self-driving initiatives, offered further reason for Tesla’s optimism, predicting that Musk will be “heavily involved” in discussions about US tariffs on Chinese goods. Ives said he anticipates “some cuts” for Tesla in any retaliatory trade policies from the Chinese government that would help Tesla navigate its “key” market in China (the country is a third of Tesla sales). And in news that may quell fears that Musk may have to officially step back from Tesla because of his newfound political influence, the Financial Times reported Monday that Musk would not take a role in the Trump administration that would require him to adjust his positions in the private sector.

Big number

300 billion dollars. That’s roughly Tesla’s added market value since Election Day. That’s it equivalent of the entire combined market capitalization of Toyota, the world’s next most valuable car company, and General Motors, the next most valuable American automaker.

Key background

Tesla shares are the face of the post-election rally across a range of asset classes as investors reacted to what is largely seen as a more corporate-friendly federal government. Stock indices such as the S&P 500 are trading at record highs, while other areas seen as closely aligned with Trump, such as bitcoin and Tesla shares, have gained strongly in recent days. Since endorsing Trump in July, Musk has become closely associated with Trump personally and politically. Musk JOINED Trump’s post-election conversation with Ukrainian President Volodymyr Zelensky last week and Trump’s niece said in a social media post on Sunday post Musk is approaching “uncle status.”

Crucial quote

“Musk has made a strategic and large bet on a Trump White House victory that will be known as the ‘bet of the ages’ for TSLA bulls,” Ives wrote Monday.

Further reading

ForbesMusk reportedly joined Trump on call with Ukrainian president: Here’s what they had to say about working togetherOf Mary Whitfill Roeloffs

ForbesTesla hits $1 trillion market cap – Musk becomes $300 billion man after Trump winOf Derek Saul