Tesla's shares are currently approaching a new peak, observing a notable uptrend today.
Tesla (TSLA with a 4.59% surge) has been on an upward trajectory post-U.S. presidential election, despite unclear opinions about how the Trump administration views electric vehicle (EV) companies.
Elon Musk's open support for Donald Trump has sparked interest among investors, leading to a 60% increase in Tesla shares since the election. The stock has also caught the eye of Wall Street, with it approaching the record-breaking closing price of $409 per share, achieved in late 2021.
Tesla shares saw a 5% rise today, before partly recovering. At 12:15 p.m. ET, shares were still 3.7% higher for the day. However, it's not just Musk's political alliances driving the stock.
Impressive year-end sales figure
Morgan Stanley analyst Adam Jonas has consistently been optimistic about Tesla stock. Today, he increased his price target for the stock by $90 to $400 per share and declared Tesla as his top pick, as per Barron's.
One reason behind this optimism is Tesla's predicted continued growth in sales in China. This significant market reportedly contributes to around 40% of Tesla's third-quarter sales volume. Moreover, data suggests that Tesla's sales in China have shown signs of improvement in the fourth quarter, with less than a month remaining in the period.
Increasing Tesla sales and increased confidence in its technology have been key factors in driving the stock toward its record high. Musk has stated that investors who don't believe Tesla can master autonomous driving technology should avoid investing in the stock. Furthermore, Musk's influence in the Trump administration could potentially lead to the implementation of federal standards which could facilitate the transition to self-driving cars.
Should you invest in Tesla?
Investors who believe Tesla can captivate consumers with its self-driving capabilities might perceive a viable path for the company to monetize this technology. As a subscription service, self-driving could potentially prove more valuable than the revenue generated from car sales alone. This optimism is pushing the stock toward its record high today.
Given Tesla's impressive growth in sales, particularly in China, and the optimism surrounding its self-driving capabilities, many finance enthusiasts are considering investing in the company. Morgan Stanley analyst Adam Jonas recently increased his price target for Tesla shares to $400, citing the potential value of its self-driving technology as a subscription service.
