Tesla CEO Elon Musk couldn’t resist a jab at short sellers this weekend, following a significant surge in Tesla’s (TSLA) stock price. The stock breached the $400 mark on Robinhood’s overnight trading platform, prompting Musk to post a playful message on X (formerly Twitter): “TSLA shorts reciting Litany Against Fear rn,” he tweeted, referencing the famous passage from Frank Herbert’s *Dune* that emphasizes overcoming fear. This cheeky remark highlights the growing optimism surrounding Tesla and the apparent discomfort of those betting against the company.
The stock’s impressive climb wasn’t a sudden leap. Tesla closed Friday at $389.22, up 5.34%, and continued its upward trajectory in after-hours trading. Analysts attribute this rally to a confluence of factors, including recent upgrades in price targets and renewed excitement about the progress of Tesla’s Full Self-Driving (FSD) technology. The release of FSD version 13.2 has been met with significant praise, particularly from BofA Securities Senior Automotive Analyst John Murphy, who described his experience with the new software as “incredibly impressive.” He noted its robust performance even in challenging driving scenarios.
The shift in analyst sentiment has been dramatic. Craig Irwin of Roth MKM, previously bearish on Tesla, significantly revised his outlook. He dramatically increased the company’s price target by a staggering 347%, from $85 to $380, while upgrading the rating to a “buy” from “neutral.” Irwin cited a lack of negative catalysts and an abundance of positive factors, including Tesla’s ambitious projects, as the rationale behind his bullish revision. His shift underscores a broader trend among analysts. The consensus rating for Tesla stock is currently “Buy,” though the average price target among recent ratings from Guggenheim, BofA Securities, and Roth MKM sits at $318.33 – suggesting a potential 13.8% downside.
Despite this potential downside projection, the overall mood surrounding Tesla remains exceptionally optimistic. The recent surge, fueled by positive analyst reviews and the promising advancements in FSD technology, has solidified Tesla’s position as a leading player in the electric vehicle market and continues to put pressure on those who have bet against its continued success. The $400 milestone, broken on Robinhood, is a significant psychological barrier, suggesting strong investor confidence in the company’s future prospects. This positive momentum will be keenly watched in the coming weeks and months.
