Tesla Stock Surges After Analysts Boost Price Targets

Positive Trends: Analysts Show Confidence in Tesla
Tesla Inc TSLA stocks rose by 2.9% to close at $400.99 on Tuesday. The momentum continued in pre-market trading with a 1.55% increase, following recent price target revisions from notable analysts.

Recent Upgrades: Significant Adjustments from Analysts
On Tuesday, Cantor Fitzgerald increased Tesla’s price target from $255 to $365 while holding a “neutral” rating. At the same time, Morgan Stanley raised their target from $310 to $400 and maintained an “overweight” rating.

These changes come as part of a series of revisions over the past few weeks. In September, RBC Capital reduced Tesla’s target from $227 to $224 but has since raised it back to $313 with an “outperform” rating.

This year, Tesla’s stock has gained over 61%, translating to nearly $490 billion added to investor wealth. The company’s market capitalization grew from $797 billion at the start of 2024 to $1.287 trillion by Tuesday’s market close.

Analyst Insights: A Shift in Sentiment
Among the most notable upgrades was Roth MKM analyst Craig Irwin, who recently changed his bearish stance to a bullish one, raising his price target for Tesla by 347% from $85 to $380 and improving his rating to “buy” from “neutral.”

Irwin expressed optimism, stating, “I don’t see very many negative catalysts… There are abundant positive catalysts… The market cap may be huge… but they are doing big things.”

Currently, 33 analysts rate Tesla’s stock as a “Buy.” The price targets vary greatly, ranging from a high of $411 to a low of $24.86. Latest ratings from Cantor Fitzgerald, Morgan Stanley, and Deutsche Bank provide an average target of $378.33, suggesting a potential downside of 6.86% from current prices.

Thus far in 2024, Tesla has seen a 61.4% increase in stock value, with a notable rally following Donald Trump’s presidential election win.

For more insights on the future of mobility, check out Benzinga’s coverage.

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Photo courtesy: Tesla