Jefferies Recommends Tesla Capitalize on Stock Rally with Equity Raise

Following Tesla's stock surge after the presidential election, Jefferies analyst Philippe Houchois recommends the company raise equity capital. The analyst believes that Tesla should capitalize on the current market environment, which has seen its market cap rise above $1 trillion. Houchois notes that Tesla's stock has become a proxy for Elon Musk's broader interests, with expectations of deregulation fueling the rally. He argues that while deregulation could boost Tesla's growth, it would also increase capital requirements. "In recent days, Tesla shares have looked like a proxy for Elon Musk’s wider interests on expectations of de-regulation driving growth across separate businesses." The analyst also points to the reliance on ZEV credits as a "less secure source of funds" and suggests that Tesla's current net cash position includes significant capital raised in previous years. Given the current market conditions, Houchois believes an equity rais…