According to Morgan Stanley analyst Adam Jonas, shares of Tesla Motors could increase by up to 30 per cent in 2017 as a result of Donald Trump’s stretch in the Whitehouse.
The Musk and Trump Relationship
When Trump was announced the victor of last year’s U.S. Presidential election, Tesla shares initially fell, but Jonas thinks that Musk’s role as strategic adviser to Trump could do wonders for the electric carmaker.
Jonas wrote: "Elon Musk has an important line of communication to Donald Trump through his role as a strategic adviser to the President-elect. While we cannot explicitly apply a monetary value to this relationship, we believe this level of coordination with the new administration could actually evolve into greater strategic value than with the prior administration.''
Manufacturing and the Model 3
Alongside Trump’s reign as President, the new Tesla Model 3 is thought to be a big contributing factor to Tesla shares potentially rising. With electric car popularity on the up, the launch of the new electric car couldn’t have come at a better time.
Jonas added: “To the extent the creation of high tech manufacturing jobs in the United States is a high priority of the administration, we believe Mr. Musk might have some objectives that could be very much in alignment with those of the Trump administration.”
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