"Child depends on mother's nobility" stocks soaring? Trump returns to the presidency, Tesla, Inc. (TSLA.US) market value has increased by over 300 billion US dollars.

After Donald Trump won the presidential election, fans of Tesla, Inc. (TSLA.US) began regrouping. With investors flooding into the company's stock and believing that Trump's second term will bring unexpected fortunes to the electric car manufacturer led by Elon Musk, the rise in Tesla, Inc.'s stock price seems unstoppable. Since the election on November 5th, the stock has risen by over 39%, increasing its market value by over $300 billion. The stock closed up about 9% on Monday, at $350. Market professionals point out that Tesla, Inc. is a typical "momentum" stock, where gains and losses quickly snowball when investor sentiment sharply shifts in any direction. Interactive Brokers' chief strategist Steve Sosnick said, "Musk has bet on Trump's victory, so it's understandable why the market sees Tesla, Inc. as a beneficiary." "In addition, the market likes to buy on dips, chase rebounds, and often use leverage or options to achieve this goal, leading to a seemingly absurd pattern of growth." Option traders are betting that the dollar will rise further. The premium on call options relative to put options is at its highest level since early 2021, with a large number of contracts expecting the stock to rise to $450 and above. This would potentially push Tesla, Inc.'s stock price above its intraday high of $414.50, set during the pandemic when retail traders drove up prices of many popular stocks. Some bearish analysts welcome this renewed enthusiasm. Wedbush analyst Daniel Ives said Trump's presidency will "change" Tesla, Inc.'s efforts in autonomous driving and artificial intelligence, raising the target price for Tesla, Inc. from $300 to $400. He estimates that the opportunity in just AI and autonomous driving alone is worth $1 trillion for Tesla, Inc. and maintains a buy rating on the stock. According to Sosnick of Interactive Brokers, a favorable regulatory environment, whether in general or specifically tailored for Musk's companies, could theoretically pave the way for the expansion of Tesla, Inc.'s autonomous driving technology. Wall Street's target prices have not kept up with the stock's performance, currently implying a drop of about 32% in the next 12 months. Some analysts express doubts about the extent of this rebound, suggesting it may overestimate any gains Tesla, Inc. may receive from a Republican election victory. On Monday, Tesla, Inc.'s 14-day relative strength index (an indicator measuring bullish and bearish price momentum) closed at 81. Levels above 70 are typically considered a technical signal that a drop may be forthcoming. Morningstar analyst Seth Goldstein stated last week, "Although the election may bring benefits, Tesla, Inc.'s stock seems to be overvalued."