Surge to a $2 trillion market value! Wall Street analysts significantly raise the target price of Tesla, Inc. (TSLA.US)

date
17/12/2024
avatar
GMT Eight
On Monday, Tesla, Inc. (TSLA.US) surged by 6.14%, closing at $463.02 per share. This increase was driven by Wall Street analysts significantly raising the target price for Tesla, Inc. On Sunday, Wedbush analyst Dan Ives raised Tesla, Inc.'s target price from $400 to $515, making it the highest target price on Wall Street. He also provided a "bull case" target price of $650, which would value Tesla, Inc. at around $2.1 trillion, with the new target price corresponding to a market cap of approximately $1.7 trillion. Ives stated in his report that the Trump administration will be a "game changer for Tesla, Inc. and Musk in the driverless and AI realm over the next few years." Tesla, Inc. uses AI-based computing technology to train cars for autonomous driving, with its most advanced driving assistant software - Full Self-Driving (FSD) still being improved. The software is currently able to complete driving tasks most of the time, but still requires human supervision. Meanwhile, Alphabet Inc.'s autonomous driving company Waymo, completes over 150,000 autonomous taxi services per week and plans to expand Waymo services to more cities by 2025. As the technology matures, Ives and many Wall Street analysts expect that Trump policies will make it easier to provide autonomous driving services. He wrote in his Sunday report, "We believe that the march towards a $2 trillion market cap for Tesla over the next 12 to 18 months is already underway." Ives has been a long-term bull on Tesla, Inc., rating the stock as "buy." However, the significance of this target price increase is that it addresses an unusual phenomenon - Tesla, Inc.'s recent stock price gains have surpassed the highest target price of mainstream Wall Street brokerages. Prior to Monday's trading, Tesla, Inc.'s stock had risen by 73% since the US election on November 5, with a 76% increase YTD. This rapid surge pushed its stock price even higher than the previous highest target price of $420 set by Daiwa analyst Jairam Nathan. Such a phenomenon of a stock price surpassing Wall Street's highest target price is very rare. Historical data shows that the last time Tesla, Inc.'s stock price exceeded $400 was at the end of 2021, with only a few analysts having target prices above $467 at that time. Now, investors finally have a target price significantly higher than the closing price of $436.23 on Friday, which may bring them some confidence. However, whether this epic rise in Tesla, Inc.'s stock price can continue in the future remains to be seen. As of the end of Monday's trading, Tesla, Inc.'s stock price has risen by approximately 86% YTD, still 11% away from Ives' new target price of $515.

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