Why Tesla Stock Jumped Tuesday
Tesla (NASDAQ: TSLA) shares surged nearly 5% Tuesday morning, getting a boost from some recent electric vehicle (EV) sales data. The stock also received support from a bullish call by a Wall Street analyst.
Tesla shares pared some of the early gains with the stock trading higher by 2% as of 2:22 p.m. ET.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
Can Tesla stock reach $800?
In a recent report, Morgan Stanley analysts raised Tesla's price target from $400 to $430 per share. They also offered a bull case scenario on which the firm applies a price target of $800 for Tesla based on its robotaxi potential.
Another catalyst today came from a report from EV research firm Rho Motion. The firm reported that December marked the fourth consecutive global monthly record of passenger car and light-duty EV sales. Importantly, it said that all major regions showed monthly sequential and year-over-year growth in December. It marked a new monthly record with over 1.9 million EVs sold, a 5% increase over the prior record. That includes battery electric as well as plug-in hybrid models.
That momentum bodes well for Tesla, the global EV leader. But it won't get the stock price to $800 alone. Morgan Stanley lead analyst Adam Jonas does see a path to that level, though, as he emphasized the increasingly important role of artificial intelligence (AI) in Tesla's plans. A fully autonomous robotaxi network is what Jonas sees as potentially pushing the stock to his bull case price target.
While investors shouldn't expect the stock to jump to the potential $800 price, they should monitor Tesla's progress using data collection and AI to launch a full self-driving software package. If it does offer that software to Tesla owners, an autonomous fleet of highly profitable robotaxis might not be far behind.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $345,467!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,391!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $453,161!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 13, 2025
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Related Articles
Can Earnings Season Be the Catalyst for U.S. Stocks?
TradingKey - Fears of persistent inflation, driven by strong employment data and Trump’s potential policies, have raised concerns that the Federal Reserve may scale back planned rate cuts. Combined with worries over high valuations and a potential stock market bubble, these factors have increased se
What to Watch When TSMC Reports Q4 2024 Earnings
TradingKey - Semiconductors have been in the news for the past two years on the back of the Artificial Intelligence (AI) revolution. That’s because the chips are powering everything AI – from data centres to large language models (LLMs).
U.S. Banking Sector Q4 2024 Earnings Preview
Banks are anticipated to shift their focus from interest rate-driven gains to growth in trading volume. While net interest income may continue to decline, the rate-cutting environment could alleviate the intense competition for deposits, as customers may seek fewer high-yield products.
What Impact Will California Wildfires Have on The Stock Market?
TradingKey - Right now in the US, there are ferocious wildfires that are destroying acres of both land and homes in California. Being spread by strong winds, the fires are also heading towards major urban centres, like Los Angeles.
