Tesla (TSLA) stock surged on Monday, adding to its nearly 13% gain from last week, as the electric vehicle giant sets its sights on a price level it hasn’t reached since early 2022. The company’s shares jumped to 389.79, advancing 0.15% after hitting a high of 404.80 earlier in the day.
Tesla is optimistic about its future growth prospects, with CEO Elon Musk predicting slight vehicle delivery growth this year and potentially higher sales in 2025. Analysts are taking notice, with Bank of America raising its price target to $400 from $350. The company’s core EV business and launch of its robotaxi are seen as key drivers of growth.
However, the stock is also facing headwinds, including a recent range-clearing pop that could have offered an add-on entry for existing holders. Additionally, the stock is more than 70% above its 200-day moving average, a red flag indicating overextension.
Analysts are divided on Tesla’s prospects, with some, like Goldman Sachs’ Mark Delaney, forecasting lower-than-expected deliveries in Q4 and next year. Others, such as Bank of America’s John Murphy, see the company poised for significant growth, citing its Texas gigafactory visit as a positive development.
Tesla’s China market remains a key driver of growth, with sales rebounding in November and expected to continue in Q4. The company is also making strides in robotaxi development, with Musk describing it as “real.” However, US and European sales are seen as lagging, with some analysts predicting significant declines next year.
Despite the mixed signals, Tesla stock remains a top performer among auto manufacturers, ranking first in the IBD Auto Manufacturers industry group. Its Composite Rating of 92 and Relative Strength Rating of 97 suggest a strong position.
As the company looks to meet its delivery targets, investors will be watching closely for updates on its vehicle sales and production plans. With the Q4 earnings report just around the corner, analysts are eagerly anticipating insights into Tesla’s growth prospects and whether it can overcome its current challenges.
Source: https://www.investors.com/news/tesla-stock-nears-400-for-first-time-since-2022