Tesla Inc. shares surged 1.38% early Monday, near $400, as investors eagerly await the unveiling of a new, affordable vehicle model targeting the Chinese market. The electric vehicle giant announced plans for the Model Q, a sub-$30,000 car designed to compete with BYD Dolphin and Volkswagen ID.3.
Tesla’s stock reached an intraday high of $401.16 in overnight trading, closing at a record high of $407.36 in November 2021. Analysts at Bank of America Securities increased their price target for Tesla from $350 to $400, maintaining a “buy” rating, citing insights from Elon Musk’s visit to Tesla’s Texas gigafactory and the latest Full Self-Driving software.
The Model Q is part of Tesla’s strategy to expand its reach in China, where local competitors like BYD and Volkswagen dominate. The new model aligns with Tesla’s efforts to innovate and capture new segments, such as the Cybercab unveiled recently. Additionally, Qraft Technologies has increased its investment in Tesla, reflecting confidence in Musk’s momentum and the company’s growth potential.
This move comes after a significant 40% rise in Tesla’s shares in November, despite challenges faced during the Robotaxi event in October. As Elon Musk continues to drive innovation at Tesla, investors remain optimistic about the company’s future prospects.
Source: https://www.benzinga.com/markets/equities/24/12/42385732/tesla-shares-surge-in-pre-market-on-monday-hovering-near-400-whats-going-on