Tech bull and prominent analyst Dan Ives is optimistic about the impact of a potential Donald Trump win on the Tesla Inc. TSLA stock, as the former president stands three electoral votes away from securing the presidency.

What Happened: Ives, an analyst at Wedbush Securities, suggests Tesla could see substantial gains under a potential Trump administration, despite broader challenges for the electric vehicle industry.

“The biggest positive from a Trump win would be for Tesla/Musk,” Ives wrote on X, formerly known as Twitter. “We believe a Trump win is a negative for the EV industry as the EV rebates/tax incentives get pulled, however for Tesla a huge positive for scale/price advantage.”

Ives projects a potential $40-$50 boost to Tesla’s stock price under a Trump presidency, citing the company’s established market position and manufacturing scale. Based on the current Tesla stock price, this presents an upside of nearly 16% to 20%.

Additionally, he expects significant artificial intelligence initiatives that would benefit Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Alphabet Inc.‘s GOOGL GOOG Google, and Palantir Technologies Inc. PLTR.

Trump is currently leading key battleground states, according to the Associated Press.

See Also: Trump Gives Victory Speech In Florida As Winning Pennsylvania Puts Him At Brink Of Victory, Vows To ‘Fix Everything About Our Country’

Why It Matters: Meanwhile, the news of Trump’s potential re-election has already had a significant impact on the market. The shares of Trump Media & Technology Group Corp DJT surged, and stock futures also experienced a rise on election night.

Additionally, yields on U.S. sovereign debt rose as investors digested the preliminary results from the closely contested fight between Trump and Kamala Harris.

Price Action: Tesla stock closed at $251.44 on Tuesday, rising by 3.54%, for the day. In after-hours trading, the stock climbed further 3.01%. Over the past year, Tesla’s stock has surged by 14.67%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote