Shares of the electric vehicle company Tesla (TSLA, Financial) climbed almost 5% on Tuesday, nearing a record-high price from an earlier period at the end of 2021, as several factors continue to give investors confidence.
One Wall Street analyst from Morgan Stanley named Tesla their top pick, saying robust sales momentum has helped China deliver in the fourth quarter to set a new company record. Shares of the electric vehicle giant advanced 4.5% by midday to $407.37 on a market cap of around $1.25 trillion, approaching their historic peak, just shy of $410.
The Analyst named Adam Jones also raised Tesla's price target from $310 to $400 by adding a note: “With 2025 ushering in a new administration, we refresh our 2025 auto forecasts, review key themes, and provide a scenario analysis to help investors frame the most relevant industry debates, including EV policies, onshoring/tariffs, China export expansion and the nascent emergence of autonomous vehicles,”
Since the U.S. presidential election, Tesla's stock has become a hot commodity, surging 60% after CEO Elon Musk publicly endorsed President-Elect Donald Trump. This is a positive sign about the regulatory environment for EVs under the new administration. Also, Tesla is on the global radar for vehicle demand, which makes it the leader in the electric vehicle sector.
Growing hopes that the company will strike the right balance between geopolitical considerations and operational execution is shown in the stock performance. The near-record rally in Tesla highlights the company's strategic importance for the booming EV market.
