10:59 AM EST, 11/06/2024 (MT Newswires) -- Donald Trump's presidency could boost Big Tech and Tesla (TSLA) by driving major artificial intelligence initiatives, potentially easing regulatory barriers, and giving Tesla a competitive edge if electric vehicle subsidies are cut and China tariffs raised, Wedbush said in a note Wednesday.

Wedbush analysts said they expect the Trump administration to boost the government's AI initiatives, including in defense, benefiting major tech firms like Microsoft ( MSFT ) , Amazon.com ( AMZN ) , Alphabet's (GOOG, GOOGL) Google ( GOOG ), and Palantir Technologies ( PLTR ) .

Lina Khan may be removed as head of the Federal Trade Commission under Trump's administration, potentially boosting deal-making in the tech sector, Wedbush said. "The [Tesla CEO Elon] Musk influence for Trump could also catalyze and accelerate a potential Khan exit at the FTC which would remove a major overhang on the tech sector," analysts said in the note.

While Trump's return to the White House would be negative for the EV industry, it would be a "huge positive" for Tesla and could add $40 to $50 per share to Tesla's stock, according to Wedbush.

"Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs," the note added.

Tesla shares were up more than 11% in recent trading and Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet and Palantir ( PLTR ) shares were also higher.

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