TLDR:
- Tesla stock nearing all-time high of $409.97, up 3.6% to $403.91 in early trading, marking potential 5th straight day of gains
- Morgan Stanley raised price target to $400, while BofA Securities increased target to $400 from $350 after Austin Gigafactory visit
- Tesla’s Chinese market showing strong performance with 141,000 new registrations in Q4 so far, ahead of Q3’s 180,000 sales
- Stock has surged over 50% since 2024 U.S. presidential election, with analysts citing Trump presidency potentially benefiting Tesla
- Company’s Full Self-Driving technology advancing, requiring intervention only once per 10,000 miles, as robotaxi launch planned for 2025
Tesla stock is edging closer to its all-time high as strong Chinese sales data and positive analyst reports fuel investor confidence. The electric vehicle maker’s shares rose 3.6% to $403.91 in early trading Tuesday, approaching the record closing high of $409.97 set in November 2021.
Chinese market performance continues to drive Tesla’s momentum. The company has registered approximately 141,000 new vehicles in China with three weeks remaining in the fourth quarter, putting it on track to exceed third-quarter sales of 180,000 units in the region. China represents a crucial market for Tesla, accounting for about 40% of its total volume.
Wall Street analysts have responded to Tesla’s performance with increased optimism. Morgan Stanley analyst Adam Jonas upgraded his price target to $400 from $310, designating Tesla as his top pick with a Buy rating. Similarly, Bank of America Securities raised its target to $400 from $350 following a visit to Tesla’s Austin Gigafactory.
The company’s technological advances have caught analysts’ attention. Tesla’s Full Self-Driving technology now requires intervention only once every 10,000 miles, comparing favorably to competitor Waymo’s 17,000-mile metric. This progress supports Tesla’s plans to launch a robotaxi service in late 2025.
Tesla’s stock performance has been particularly strong since the U.S. presidential election, rising approximately 55%. Investors view CEO Elon Musk’s support of President-elect Donald Trump as potentially beneficial for the company, especially regarding federal standards for self-driving vehicles.
The broader context of Tesla’s market position remains noteworthy. Electric vehicles now represent more than 30% of new-car sales in China, while the U.S. market share sits at around 8%. This disparity highlights the importance of Tesla’s strong Chinese presence.
Current market valuations reflect high expectations for Tesla. The stock trades at 116 times estimated 2025 earnings, well above market averages. The average analyst price target stands at $267, considerably below current trading levels.
Cantor Fitzgerald analyst Andres Sheppard maintains a Hold rating with a $365 target, noting increased optimism about robotaxi potential while expressing caution about current valuations.
BofA analysts believe Tesla is well-positioned for growth in 2025 and beyond. They highlight potential margin improvements through software revenue from Full Self-Driving features, premium connectivity, and charging services.
The company’s financial position remains solid, with over $33 billion in cash and investments reported at the end of the third quarter of 2024.
Looking ahead, Tesla plans to expand its product line with the ongoing Cybertruck production ramp-up and the reported development of Model Q, a sub-$30,000 vehicle targeted for 2025 release.
Vehicle delivery projections for 2025 indicate 20-30% growth, according to CEO Elon Musk’s outlook.
The stock’s year-to-date performance shows a 57% increase, outpacing broader market indices.
Tesla’s global manufacturing footprint, including facilities in Texas, Berlin, and Shanghai, provides production capacity to meet growing demand.
The company continues to develop its humanoid robot project, Optimus, with limited production expected to begin next year and mass production planned for 2026.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
