We've been trying to understand crucially whether this relationship, a personal one really between, you know, Musk and Trump and the future administration, will bear dividends for the business of Tesla. And you've been trying to measure it up. So is UBS.

Yeah, I think UBS's report is very interesting today because they they sort of grant this idea that narrative-wise it makes a lot of sense that you would see a run up in the stock given how close Elon Musk has placed himself

to Donald Trump.
But they really sort of pick apart some of the reasons, you know, commonly cited for this run up in the last few weeks. You know, you take a look at taking away EV tax credits in the US, for example.

Maybe Tesla is able to handle that better than some of its competitors that aren't making money on EVs.
But it's still not a positive for EV demand as a whole.
And so UBS is a bit bearish on that front.
And when you look at our autonomous

vehicle policy as well, you don't have an actual robotaxi at Tesla, whereas, you know, Waymo is out with a robotaxi now and you know, that company was just valued at about 45 billion.
So does it really make sense to put, you

know, potentially hundreds of billions of dollars on a Tesla autonomous vehicle valuation given its its sort of closest comp? Waymo is valued at much less than that.
The problem is the price target for the next 12 months on average from the analysts that rate it is well below

where we're currently trading at term 44,
whereas the last price is currently 354. We've seen the relative strength index of
Tesla just show that we have overbought territory and yet we don't seem to be
able to actually bet against the stock.

Yeah, I think that's another point that
UBS makes interestingly today is just that we've seen this before.
We've seen that this is sort of an ultimate momentum stock, that when it
rises, it really rises. When it falls, it really falls.
And I guess that's sort of befitting of

Musk, right?
He doesn't do anything halfway. But you really see in terms of, you
know, equities that are commonly traded with options that, you know, really sort
of lead to these outsized moves. I think Tesla is sort of exhibit A in
terms of stocks that, you know,

because of the options activity, you
tend to see, you know, sustained and really dramatic moves in the stock one
way or the other. When you have a sort of reason for the
stock to, you know, narrative-wise go in

Tesla's $350 Billion Post-Election Surge

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Analysis of Tesla's stock performance in relation to Elon Musk and Donald Trump's relationship.

Exploration of the impact of Musk and Trump's relationship on Tesla's business.

UBS report suggests a narrative connection between Musk's proximity to Trump and Tesla's stock increase.

UBS report analyzes reasons for Tesla's stock rise, including the removal of EV tax credits.

UBS's bearish outlook on EV demand due to factors like the removal of tax credits and Tesla's autonomous vehicle policy.

Comparison of Tesla's autonomous vehicle valuation with competitors like Waymo.

Questioning the justification for Tesla's high valuation compared to Waymo's valuation of $45 billion.

Analyst price targets for Tesla are significantly lower than the current trading price.

Tesla's stock is considered overbought, yet it continues to defy bearish predictions.

Tesla's stock behavior as a momentum stock and the role of options trading.

Tesla's stock experiences significant rises and falls, reflecting its momentum-driven nature.

Musk's all-or-nothing approach aligns with Tesla's stock volatility.

Options trading activity contributes to Tesla's dramatic and sustained stock movements.