Tesla (TSLA) shares soared to a historic high of $417.86 on Wednesday, surpassing the previous peak of $414.50 from over three years ago. This surge follows a 65% rise since the U.S. presidential election on November 5, driven by investor optimism about the company’s prospects under CEO Elon Musk’s relationship with President-elect Donald Trump.
The stock’s rally is underpinned by strong performance in key markets. Tesla China reported record sales for the first week of December, with 21,900 electric vehicles sold, marking the highest weekly sales figure for the fourth quarter. This follows an impressive November where Tesla sold 73,000 units, primarily driven by demand for the Model Y sedan.
Elon Musk has set ambitious targets for Tesla’s future, forecasting a 20% to 30% increase in EV sales for the next year and promising the introduction of a more affordable model by the latter half of 2025. This growth is not only attributed to traditional electric vehicle sales but also to Tesla’s advancements in autonomous driving and robotics, areas where AI plays a significant role.
Wall Street has responded with several upgrades and price target adjustments, reflecting confidence in Tesla’s broader market potential. Goldman Sachs (GS) analyst Mark Delaney, for instance, raised his price target by $95 to $250 per share. Delaney acknowledges potential challenges in Tesla’s core automotive business in the near to medium term but highlights the stock’s attractiveness due to its involvement in AI, autonomous driving, and robotics. He notes that while the stock might seem fully valued, it could maintain a higher multiple due to the long-term opportunities in AI and related technologies.
This convergence of market performance, strategic announcements, and analyst optimism paints a picture of Tesla not just as a car maker but as a pivotal player in the evolving landscape of technology and AI-driven solutions in transportation.
Price Action: TSLA is currently trading at $416.13, a gain of $15.14, or 3.78%, intraday. Over the past month, the $1.29 trillion market cap company has experienced an impressive surge, with shares rising 26%. Furthermore, Tesla’s stock has seen a remarkable 67% increase year-to-date.
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