Tesla’s stock climbed to new highs as investors focused on its Robotaxi and Full Self-Driving (FSD) technology. Shares jumped 69% in just over a month, adding $55 billion (€53 billion) to its market valuation, now at $1.35 trillion (€1.29 trillion). Tesla’s Price-to-Earnings (P/E) ratio hit 103, far exceeding Nvidia’s 54. Year-to-date, Tesla’s stock is up 57%, reversing earlier losses.

The Cybercab and Robovan, built for autonomous driving without steering wheels, highlight Tesla’s innovation. Regulatory shifts under President-elect Trump could support Tesla’s Robotaxi business. A Bloomberg report noted plans for a new federal framework for self-driving car regulations, which could expedite mass adoption.

Trump Policies Could Aid Tesla

At the “We, Robot” event, Musk projected that the Cybercab business could push Tesla’s market cap to $5 trillion (€4.8 trillion). ARK Invest estimated that by 2029, robotaxis will generate 90% of Tesla’s value and earnings, predicting a share price of $2,600 (€2,484).

The Trump administration’s potential removal of EV subsidies could paradoxically benefit Tesla. While Tesla received $739 million (€707 million) in regulatory credits last quarter, it remains profitable without subsidies. Smaller rivals dependent on government support may struggle, enhancing Tesla’s competitive edge.

Tesla’s Core Business Remains Strong

Tesla’s growth wasn’t driven solely by political factors. Strong Q3 earnings on 22 October sparked a 12% jump in its stock. Automotive revenue grew 2% year-on-year, marking a recovery after declines in previous quarters. Total revenue rose by 8%, Tesla’s highest growth rate in a year.

Tesla delivered 462,890 vehicles in Q3, up 6.4% year-on-year, the highest Q3 total in company history. Musk expects deliveries to grow 20%-30% in 2025, reflecting robust demand for Tesla’s vehicles as it expands into autonomous driving.