Since Trump won the US presidential election, the "top hero" under Musk's umbrella $Tesla (TSLA.US)$ has been rising every trading day. On Monday, Tesla's stock price closed up nearly 9%, closing at $350, reaching as high as $358.64 during the session. Tesla achieved the largest five-day cumulative increase in the past four years.

Last Friday, Tesla's market cap surpassed the $1 trillion mark for the first time since 2022. Tesla CEO Musk's net worth exceeded $300 billion for the first time since 2022, firmly holding the title of the world's richest person.

The peak of Tesla's stock price was in November 2021 when it exceeded $414. In October 2021, Tesla's market cap surpassed $1 trillion for the first time in history. Tesla's stock price then peaked and fell back, spending only a few months in the trillion-dollar market cap club. As of Monday's close, Tesla's stock price is about 15% below its all-time high.

Tesla's consecutive rise coincides with President-elect Trump's formation of the new US government cabinet. There are many signs recently indicating that Musk's communication channel with Trump and his influence during Trump's second term will be unprecedented:

Media reports stated that Musk participated in the Trump-Zelensky call. The call between Trump and Zelensky lasted about 25 minutes, and Musk appearing in the call was unexpected and not pre-arranged; Musk happened to walk into the room at that time.

Trump and Musk requested the next Republican leader of the Senate to support 'suspension appointments'. Musk and US President-elect Trump demanded the next Senate Republican leader candidate, traditionally thought to be a long-term ally of McConnell, to support bypassing the Senate for suspension appointments. Trump insisted that the next Republican leader support allowing him to bypass the Senate for these appointments, with Musk quickly stating this is crucial for achieving Trump's agenda.

Tesla's major bulls, Wedbush analysts, significantly raised Tesla's target price, reiterating their outperform rating compared to the large cap.

We have raised Tesla's target price from $300 to $400 because we believe Trump's presidency will change the future of Tesla and Musk's autonomous driving and AI story in the coming years.

Bank of America analysts recently stated:

It is difficult to determine how Musk's increasingly close public relationship with Trump will benefit Tesla, but this requires close attention. They have raised Tesla's target price from $265 to $350.

An article on the Wall Street news website previously pointed out that during the third-quarter conference call, Musk mentioned that he would use his influence within the Trump administration to establish a federal approval process for autonomous driving cars. Currently, approvals are conducted at the state level, but Musk believes that once Tesla eventually offers a more advanced partially autonomous driving system, it will be a regulatory barrier Tesla needs to overcome.

In the future, autonomous driving will become one of the most important parts of Tesla's profit landscape. Full Self-Driving (FSD) will bring more value to Tesla.

In addition to Tesla, Musk's SpaceX has already obtained a large number of government contracts, which are expected to continue to receive new l from the new government in the future. Furthermore, some of the 19 known federal lawsuits and investigations against his company may gradually come to a complete close.

Editor/Somer