With the holidays almost here and a new year just around the corner, many traders and investors are preparing to take stock of their portfolios and consider how to optimise them for 2025. It\u2019s been a whirlwind 12 months or more for the US stock market, with both major indices (Nasdaq 100 and S&P 500) recording over 25% YTD gains\u200a\u2014\u200aand this despite rampant geopolitical uncertainty and multi-year-high interest rates! Even though equities markets have seen a good general performance, there have certainly been some big individual winners, too. AI chipmaker Nvidia made major headlines in the summer and now sits at a cool +183% YTD. Meanwhile, Elon Musk\u2019s flagship brand, Tesla, may have only managed around +75% over the same period, but the electric carmaker\u2019s future looks even brighter for a range of\u00a0reasons.<\/p>\n
With Musk already named one of President Trump\u2019s right-hand men selected to head up the new Department of Government Efficiency, it\u2019s reasonable to expect that the political environment will prove especially favourable to Tesla over at least the next four years. The acceleration of the green agenda globally, coupled with growing tensions in key oil-producing regions\u200a\u2014\u200anot to mention the company\u2019s own strong performance\u200a\u2014\u200aare also positive factors for TSLA. In this piece, we\u2019ll look at how this combination of external and internal factors could affect the stock\u2019s price in 2025 and\u00a0beyond.<\/p>\n
As we\u2019ve already touched upon, Tesla CEO Elon Musk has been identified by incoming President Trump as key to his administration\u2019s success. The soon-to-be Commander-in-Chief sees Musk\u2019s undeniable business prowess as something that can be applied to optimise the US government\u2019s bloated and inefficient state infrastructure. As part of Trump\u2019s flock, it\u2019s unlikely that the Republican will enact any laws liable to harm\u00a0TSLA.<\/p>\n
In fact, the pledge of 25% tariffs on Mexico already presents a huge potential boon for Tesla\u2019s already swelling stock price. The big three US carmakers Chrysler, Ford, and General Motors, German giants Mercedes, Volkswagen, and BMW, and even Asian Model 3 competitors Nissan and Kia all have or are planning Mexican factories producing cars for the US market. The price advantage this gives both the luxury and budget manufacturers over US-made Teslas will be slashed significantly, which can only be good news for the Freemont, California-based automaker\u2019s stock\u00a0price.<\/p>\n
Since Trump won the election, TSLA is up over 90%. Indirectly, yet also significantly, Trump\u2019s strong anti-Iran policy in the Middle East is likely to lead to further conflict in this oil-rich region, pushing up the price of ICE fuel. This will make electric vehicles even more attractive, especially taken together with the generous green subsidies, faster charging, and longer-range batteries now available.<\/p>\n
When looking at the non-business-related fundamentals working in TSLA\u2019s favour and considering the larger-than-life crypto bro image of founder and CEO Elon Musk, it\u2019s easy to overlook just how well-managed Tesla actually is. The company\u2019s Freemont, California plant, which is now the US\u2019s biggest car manufacturing facility, hit full capacity this year and produces up to 500,000 vehicles annually. Despite many years of struggling, Tesla finally became profitable in 2020. For the year ending 2024, it reported net income of $2.17 billion. Though this represents a dip from 2022 and 2023, it is largely due to increased R&D investments in AI-based self-driving technology.<\/p>\n
Much like its decision to remain in the US despite higher costs of operation, this less-travelled and more expensive path could pay huge dividends in the future. Between self-driving taxis and logistics vehicles, the implications of fully functional autonomous driving technology would be almost impossible to quantify. The company\u2019s sub-$30,000, two-passenger Cybercab is tipped to go into production in 2026. If approved before the end of Trump\u2019s term, the potential upside for TSLA would be massive. In addition to chasing more revenue, Musk is also trying to improve competitiveness through aggressive cost-cutting measures like simplified vehicle design and large-scale staff layoffs. All things considered, the future looks bright for Tesla, even at today\u2019s stock price of\u00a0$430.60.<\/p>\n
Libertex offers a vast CFD offering comprising everything from metals, ETFs, and forex to indices, crypto and individual stocks. In addition to the core US indices like the Nasdaq 100<\/a> and S&P 500<\/a>, Libertex offers both long and short positions in individual stock CFDs, including Tesla<\/a> and Nvidia<\/a>. For more information or to create an account today, visit www.libertex.com\/signup<\/a><\/p>\n Risk Warning:<\/em><\/strong> CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. <\/em>78% of retail investor accounts lose money when trading CFDs with this provider.<\/em><\/strong> Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your\u00a0money.<\/em><\/p>\n Tesla Trumps the Competition, but the Best Is Yet to Come<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" With the holidays almost here and a new year just around the corner, many traders and investors are preparing to take stock of their portfolios and consider how to optimise them for 2025. It\u2019s been a whirlwind 12 months or more for the US stock market, with both major indices (Nasdaq 100 and S&P 500) […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-32493","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/32493"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32493"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/32493\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}