This Stock Could Skyrocket on Monday

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MARKETS TREND

Monday is a big day for US politics as Donald Trump will return to the White House, and it is a big day for the stock markets, as his swearing in could affect numerous stocks.

Federal Reserve's signal of reduced monetary easing in 2025 triggered a sharp sell-off across major U.S. stock indices. The projected Fed funds target rate now stands at 3.9%, up from 3.5% following the September meeting. The Dow Jones Industrial Average declined for the tenth consecutive trading day, marking its steepest single-day drop since August 5, when the index fell by 3%. Today's decline slightly exceeded that figure. Similarly, the S&P 500 experienced its worst session since August 5, when it dropped 2.8%. The Nasdaq Composite, meanwhile, fell 3.5%—its sharpest loss since July 24.

One stock is poised to benefit more from that day than any other, and that is Tesla (TSLA). The connection between Tesla CEO Elon Musk and President-elect Donald Trump is no secret. Musk is part of the incoming President’s close advisors and is set to head up a new Department of Government Efficiency.

In 22024, the Tesla stock price increased by 63%, and the majority of those gains occurred after Trump won the US presidential election. Imagine what might happen when Trump is sworn in. This could be a stock that investors are sleeping on right now, and even though many analysts expect the stock to do well in 2025, it could make incredible gains on Trump’s first day in office.

Tesla Good for Short and Long Term Investors

Any investor hoping to make a quick buck on the stock markets should buy in on Tesla stock as soon as possible. We anticipate that the stock will climb quickly on Monday despite climbing so high already for this week.

What will likely happen early next week is that we will see a similar course for Tesla as what we saw in November. That would mean that the stock will shoot up for a little while and then settle at a higher level.

We expect the price to be high for the beginning of Trump’s administration and then correct after a few weeks. However, the stock price could climb even higher later on in the year as some of Tesla’s plans for the year take effect and as new Trump policies start to benefit the automaker.

Tesla has plans for several new vehicles in 2025, including a crossover compact and a new version of the Model Y car. They are also expecting to see advances in fully self-driving cars later on this year, which if that pays off, could revolutionize the industry. This is not a stock to sit on for long, and it could be one of the top performers in 2025.

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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