Tesla Inc. (TSLA) has been on a tear since its earnings report in October, with its stock value surging by an impressive 63%. This remarkable growth has caught the attention of analysts, who are pointing to the company’s expanding deliveries and the potential of its autonomous driving technology as key drivers.
Gene Munster, Managing Partner at Deepwater Asset Management, highlighted the impressive performance of Tesla’s stock on X (formerly Twitter). He noted that while the Nasdaq has seen a modest 6% increase, Tesla’s stock has skyrocketed. Looking ahead, Munster predicts that the continued growth in deliveries, expected to remain flat in 2024 and rise by 20% in 2025, combined with the long-term potential of Tesla’s autonomous driving technology, will further strengthen the company’s fundamentals and lead to additional price appreciation.
“The long-term opportunity around autonomy will power the fundamentals that should lead to further price appreciation,” Munster wrote.
This latest surge in Tesla’s stock value follows a series of events that have significantly impacted the company’s trajectory. Notably, the close ties between President-elect Donald Trump and Tesla CEO Elon Musk were evident in the market, with hedge funds shorting Tesla experiencing a substantial $5.2 billion loss after Trump’s victory.
In the wake of the presidential election, Tesla’s stock rallied by a staggering 47% in just one month. This dramatic surge prompted Wedbush analyst Dan Ives to raise the price target from $300 to $400, citing Trump’s win as a potential game-changer for Tesla’s autonomous and AI story.
Tesla shares closed Monday with an 8.96% gain, finishing at $350. In after-hours trading, the stock continued its upward climb, reaching $357.98.
The remarkable growth of Tesla’s stock highlights the market’s optimism about the company’s future, fueled by its expanding deliveries and the long-term potential of autonomous driving technology. As Tesla continues to innovate and push the boundaries of electric vehicles, it will be interesting to see if its stock can maintain this impressive momentum in the months and years to come.
