TSLA is now
up almost 50% since the election day as the bullish momentum in the stock exploded
following Trump’s victory. This shouldn’t be surprising given that Elon Musk
bet big on Trump and the market is now rewarding it.
TSLA stock 1 hour
It looks
like the US economy continues not only to do well but also re-accelerating amid
the Fed’s easing and the expectations of expansionary fiscal policies like tax
cuts and deregulation. Moreover, the manufacturing cycle might be in the early
innings of a growth phase, so those are all positive macro factors for the
stock.
Tesla, like
Bitcoin, Dogecoin and so on have been the top beneficiaries of Trump’s
victory given their direct connection to Trump. For now, there’s no real top in
sight as we would likely need a contractionary monetary policy or a notable
slowdown in the economy to turn things around.
The risk
going forward is the Fed. If the central bank starts to mention the need of
more tightening, then we could see some big corrections in all risk assets.