Tesla (TSLA) enjoyed a year-end rally on Monday, with shares hitting another new high on optimism about Tesla’s “autonomous opportunity” and the Trump factor.

Tesla shares rose over 6% to close at over $463 per share. The stock is up a whopping 18% in the past five days, reflecting positive news reports about Tesla’s — and CEO Elon Musk’s — connection to President-elect Donald Trump. Wall Street analysts then re-evaluated the stock – most recently Tesla mega-bull Dan Ives at Wedbush Securities.

“We estimate that the AI ​​and autonomous capabilities are worth at least $1 trillion to Tesla alone, and we expect these important initiatives to now accelerate under the Trump White House,” Ives wrote on March 16 . December in a note to clients, increasing its price target to $515 to $400.

Reuters reported on Friday that Team Trump recommended that the new administration repeal an order from the National Highway Traffic Safety Administration (NHTSA) that requires automakers to report accidents involving self-driving or autonomous driving systems. Such a move would obviously be a good thing for Tesla. According to Reuters, the company had to report more than 1,500 accidents related to its FSD (Full Self-Driving) and Autopilot software to NHTSA.

Last month, Bloomberg News reported that Trump’s transition team told advisers that it planned to make a “federal framework” for fully self-driving (FSD) or autonomous vehicles one of the Department of Transportation’s priorities, according to people familiar with the matter.

Relaxing the rules for introducing self-driving vehicles, especially those without pedals or steering wheels, would be a huge boon for Tesla. Musk has repeatedly said that the company’s future depends on FSD and autonomous technologies.

Earlier this month, Deutsche Bank’s Edison Yu, Bank of America’s John Murphy and Morgan Stanley’s Adam Jonas increased their price targets on Tesla as shares rose.

Tesla stock is up a whopping 75% since Election Day.

Ives also predicted that Tesla could reach a market cap of $2 trillion by the end of 2025 (currently around $1.5 trillion) as Tesla’s “autonomous vision takes shape” and “very solid demand for Tesla Deliveries from China add to the profits.

Ives also believes Musk is involved in discussions about tariffs in China, with the possibility that Tesla will “outsource” the tariffs.

Such carve-outs would allow Tesla to export Chinese-made electric vehicles to the US with reduced or even no tariffs. Tesla is believed to be able to produce electric vehicles more cheaply in China, although the company hasn’t revealed how much better its margins and costs are for building vehicles on the mainland.

The story continues