Tesla shares hit a three-year high on Tuesday. On Wednesday, the share price could even reach its highest level ever.
• Tesla shares on record
• Price target raised by another analyst
• Trump election supports the rally
At just under $410, Tesla shares were worth more on Tuesday than they have been in more than three years. Even though the rally lost some momentum in late trading, the share has its sights firmly set on its all-time high of $414. On Wednesday, the electric car maker could make a new attempt to surpass the record mark.
Another analyst is positive
After analysts at Bank of America recently raised their price target for Tesla shares from $350 to $400, Tesla expert Adam Jonas from Wall Street giant Morgan Stanley followed shortly afterwards: He also set his new Tesla price target $400 and confirmed the value as a “Top Pick”. Jonas was significantly more optimistic than before: the previous price target was $310, which was significantly lower.
Tesla as one of the biggest beneficiaries of Trump 2.0
In doing so, Jonas also took into account the recent rally in Tesla shares. The share has gained more than 61 percent in value over the course of the year so far, but the share gained a lot of momentum, especially after the US elections. In the last five weeks, the electric car manufacturer’s title has increased by more than 22 percent.
In particular, it is the proximity of the Tesla boss Elon Musk to US President-elect Donald Trump, which supports the upward trend for Tesla shares. Investors are hoping for Tesla-friendly policies from the Republican – also due to the fact that Musk has now achieved greater political influence and has become head of the so-called DOGE department, a newly created authority. The Department of Government Efficiency aims to act in an advisory capacity to ensure greater efficiency in US authorities and to identify massive savings potential. At least this should not be a disadvantage for Tesla, a company that is under the supervision of the SEC.
Positive news from China
The Musk Group also had positive news regarding business development. In the first week of December, the electric car manufacturer sold 21,900 vehicles on the important Chinese market, as Tesla China announced. This was the highest weekly sales in the fourth quarter of 2024. The company had already set a record in China in November and celebrated the best sales month in 2024 with 73,000 vehicles sold.
Sales promotion measures also contributed to the success in China: Tesla, among other things, gave buyers a temporary discount of 10,000 yuan (the equivalent of around 1,380 US dollars) on outstanding loans for the Model Y in order to make up ground that the US company had lost in a cost-cutting competition led by competitor BYD, according to Reuters.
Editorial team finanzen.net
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