Tesla shares rise 8% as post-election recovery continues

Tesla Stocks rose 8% on Monday, continuing their post-election rally as President-elect Trump, who is closely allied with CEO Elon Musk, begins forming his presidential cabinet.

Wedbush analysts reiterated their “outperform” rating on the stock, echoing earlier positive outlooks in response to Tuesday's results. Tesla recently reclaimed its $1 trillion market cap after rising nearly 30% last week.

“We are increasing our price target on Tesla from $300 to $400 as we believe Trump's victory in the White House will be a game-changer in the autonomy and AI story for Tesla and Musk in the coming years “ wrote the Wedbush analysts.

Musk's fortune shot past $300 billion in the days since Trump's decisive election victory, further cementing his place as the world's richest man and joining the wave of gains in the tech and crypto sectors since post-election trading began.

It is unclear whether Musk, who has spent at least $130 million on Trump's campaign, will receive an official title in Trump's second White House or influence policy decisions among his inner circle.

Either way, Musk stands to potentially make billions from new government contracts with his companies, on top of the $19 billion SpaceX has already received. Some or all of the 19 known ongoing federal lawsuits and investigations against his companies may begin to wind down.

“It is difficult to assess how Elon Musk's increasingly close public relationship with President Trump could benefit Tesla, but this bears close observation,” Bank of America analysts wrote in a note last week, lifting their TSLA price target from 265 $350 to .

Trump has previously said he could cut the $7,500 federal electric vehicle tax credit, and those credits have helped boost sales of Tesla vehicles in the past.

At one of his recent campaign rallies, Trump suggested putting Musk in charge of “government efficiency,” and he was present for Trump's phone call with Ukrainian President Volodymyr Zelensky two days ago.

— CNBC's Michael Bloom, Annie Palmer and Lora Kolodny contributed reporting.