Tesla shares close at record high, boosted by 69% pop since Trump election victory

• Tesla shares rose almost 6% on Wednesday, lifting the electric vehicle maker's stock price past its prior high reached in 2021.
• The stock, which doubled in valued last year, is up about 71% in 2024, with almost all of those gains coming since Donald Trump's election victory last month.
• "Musk's authentic support for Trump likely doubled Tesla's pool of enthusiasts and lifted credibility for a demand inflection," wrote analysts at Roth MKM in a report on Dec. 2.

Tesla shares jumped to an all-time high on Wednesday, surpassing their prior record reached in 2021, sparked by a post-election rally and Wall Street's increased enthusiasm for Elon Musk's electric vehicle company.

The stock rose to a closing high of $424.77, which is about $15 above its previous peak of $409.97 on Nov. 4, 2021.

Tesla's market value has swelled by about 71% this year, with almost all of those gains coming since Donald Trump's election victory early last month. The stock's 38% rally in November marked its best monthly performance since January 2023 and its 10th best on record.

Musk poured $277 million into a pro-Trump campaign effort, according to Federal Election Commission filings, and turned his support for the Republican nominee into another full-time job ahead of the election, funding a swing-state operation to register voters and using his social media platform X to constantly tout his preferred candidate, frequently with misinformation.

The world's richest person, who's seen his net worth swell to more than $372 billion, according to Forbes, is set to lead the Trump administration's "Department of Government Efficiency," alongside onetime Republican presidential candidate Vivek Ramaswamy.

His new role could give Musk power over federal agencies' budgets, staffing and the ability to push for the elimination of inconvenient regulations. Musk said during a Tesla earnings call in October that he intended to use his sway with Trump to establish a "federal approval process for autonomous vehicles." Currently, approvals happen at the state level.

"The stock is responding to the Trump bump," Craig Irwin, an analyst at Roth MKM, told CNBC's "Squawk on the Street" last week. Irwin had just increased his price target to $380 from $85, writing in a report that "Musk's authentic support for Trump likely doubled Tesla's pool of enthusiasts and lifted credibility for a demand inflection."

On Wednesday, analysts at Goldman Sachs boosted their price target on Tesla, joining a parade of firms that have lifted their price expectation or their rating on the stock. The Goldman analysts wrote that "the market is taking a more forward-looking approach to Tesla, including with respect to its AI opportunity."

Analysts at Morgan Stanley and Bank of America have also issued bullish reports of late.

Since Trump's victory, Musk has been accompanying the president-elect in meetings with world leaders, and began advising him and members of Congress as to which federal agencies, regulations and budget items the billionaire would like to eliminate or greatly reduce.

Tesla's surge to a record marks a dramatic turn from its performance to start the year. The company's shares plunged 29% in the first three months of 2024, the worst quarter for the stock since the end of 2022 and the third worst since Tesla went public in 2010. At the time, investors were concerned about Tesla's core business, which reported declining revenue in the first quarter in part due to increased competition from China.

In its third-quarter earnings report in October, Tesla reported a year-over-year revenue increase of 8%, which fell just shy of estimates. However, the company reported better-than-expected profit, and Musk said on the earnings call that his "best guess" is that "vehicle growth" will reach 20% to 30% next year, due to "lower cost vehicles" and the "advent of autonomy." That forecast was ahead of analysts' predictions.

WATCH: Tesla's FSD tests were 'incredibly good'