Trump's victory and promises of relaxed regulations on self-driving cars pushed investors to drive the EV maker's stock valuation up to $1.1 trillion.

The company's market value surged on reports that Donald Trump's transition team plans to relax federal regulations on self-driving cars.

After an underwhelming year, Tesla (NASDAQ: TSLA) stock soared last month, boosted by hopes that Trump's victory would help the electric vehicle (EV) maker, as CEO Elon Musk has made himself a close ally to president-elect Trump,

While long-term investors appear to see substantial upside for Tesla from a Trump presidency, we’d be much more circumspect about Tesla stock at current levels.

Shares of Tesla Inc. TSLA shed 1.59% to $351.42 Tuesday, on what proved to be an all-around mixed trading session for the stock market, with the NASDAQ Composite Index COMP rising 0.40% to 19,480.91 and the Dow Jones Industrial Average DJIA falling 0.