Tesla’s stock surged 6.9% in Friday trading as the electric vehicle (EV) company posted strong sales data from China, buoying market expectations. The positive performance comes amid a broader gain for the S&P 500 index and Nasdaq Composite.
The report by Reuters showed that Tesla’s sales in China increased 8.8% year over year to over 657,000 vehicles, exceeding analyst projections. Vehicle sales accelerated further in December, delivering growth of 12.8% and reaching 83,000 units last month.
Tesla’s Q4 update revealed the company produced 459,000 vehicles and delivered 495,000 vehicles, although this fell short of average analyst estimates. The results also resulted in a total deliveries tally of 1.79 million vehicles for 2024, below forecasted deliveries of 1.806 million vehicles.
A recent note from Canaccord maintained its buy rating on Tesla, raising the company’s one-year price target from $298 to $404 per share. The firm believes that Tesla’s business fundamentals support valuation multiples comparable to other megacap tech peers. With a strong position for growth in self-driving vehicles, batteries, and robotics, Canaccord considers Tesla a long-term winner despite limited upside.
Source: https://www.fool.com/investing/2025/01/03/why-tesla-stock-is-surging-today