TSLA breaks out. All-time highlights in sight.

TSLA is now up nearly 50% since Election Day as bullish momentum in the stock exploded following Trump’s victory. This should not be surprising since Elon Musk bet big on Trump and the market is now rewarding it.

It appears that the US economy is not only continuing to perform well, but is also accelerating again amid Fed easing and expectations of expansionary fiscal policies such as tax cuts and deregulation. Also, the production cycle may be at the beginning of a growth phase, so these are all positive macro factors for the stock.

Tesla, like Bitcoin, Dogecoin and so on, have been the biggest beneficiaries of Trump’s victory given their direct connection to Trump. For now, there is no real peak in sight as we would likely need contractionary monetary policy or a notable slowdown in the economy to turn things around.

The risk going forward is the Fed. If the central bank starts mentioning the need for more tightening, then we could see some big corrections in all risk assets.