TLDR:
- Tesla stock rose 5% following multiple positive developments
- Company received 50,000 orders for redesigned Model Y in China within 24 hours
- New Model Y pricing is 5% higher than previous model, with March delivery timeline
- Morgan Stanley set $800 bull case price target, citing AI advantages
- Stock showing technical strength with 70% surge since November election
Tesla’s stock gained momentum this week, climbing 5% on Wednesday as investors responded to strong demand for its redesigned Model Y in China and an optimistic price target from Morgan Stanley.
The electric vehicle maker received an impressive response in the Chinese market, with reports indicating 50,000 orders for its updated Model Y SUV within the first 24 hours of availability. This information, shared by Chinese bloggers citing Tesla’s sales personnel, shows robust demand despite a 5% price increase compared to the previous model.
The refreshed Model Y, scheduled for March deliveries in China, represents Tesla’s latest effort to maintain its competitive edge in the world’s largest electric vehicle market. The company has already begun production of the updated model at its facility in Germany, preparing for its European launch in the coming months.
The vehicle’s success in China holds particular importance as the country continues to be a key market for Tesla’s global growth strategy. The strong initial demand suggests that Chinese consumers remain receptive to Tesla’s products even at premium price points.

Morgan Stanley’s analysis added to the positive sentiment, with the bank setting an $800 “bull case” price target for Tesla shares. The financial institution’s outlook emphasizes Tesla’s growing strength in artificial intelligence applications, particularly as competition in the basic electric vehicle market intensifies.
The investment bank highlighted Tesla’s advantages in network services and autonomous ridesharing capabilities. These technological elements could provide Tesla with additional revenue streams through subscription services offered to vehicle owners.
Tesla’s stock performance has shown notable technical strength, with shares rising 70% since early November. The surge followed the U.S. election, partly driven by investor speculation about potential favorable policies for autonomous vehicle development under the incoming administration.
The stock’s technical indicators suggest continued upward momentum. Analysis shows consolidation within a flag pattern, typically considered a signal for continued upward movement. Additionally, the stock’s 50-day moving average appears ready to cross above the 200-day moving average, forming what traders call a “golden cross.”
Trading volumes have decreased during the recent rally, indicating that some large investors may be waiting on the sidelines. This pattern has caught the attention of market analysts who monitor institutional participation as an indicator of trend sustainability.
Support levels at $300 and $265 have emerged as key technical markers for investors watching the stock’s movement. The $300 level corresponds with previous price peaks from mid-2023, while the $265 mark aligns with technical support from the stock’s recent trading pattern.
The company’s production of the new Model Y has begun at its German manufacturing facility, positioning Tesla to meet European demand. North American availability is expected to follow in the coming months, expanding the market reach for the updated vehicle.
Recent economic data has also played a role in Tesla’s stock movement. Lower-than-expected inflation figures have boosted investor confidence that interest rates might decrease, potentially making vehicle financing more affordable for consumers.
The stock’s current trading level remains 12% below its mid-December peak, despite the recent gains. This positioning has created discussion among market observers about potential room for further upward movement.
Technical analysis using historical price patterns suggests a potential longer-term target of around $775, representing an 80% increase from current levels. This projection uses comparison with similar breakout patterns from Tesla’s trading history.
The combination of strong Chinese demand, Morgan Stanley’s optimistic outlook, and technical trading patterns has created a supportive environment for Tesla’s stock price in the early weeks of 2025.
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