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Shares of Tesla rose to a three-year high Tuesday, lifted by an optimistic report from Morgan Stanley analyst Adam Jonas.
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The stock earlier rose to near $410, touching their highest level since November 2021.
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Jonas set a $400 price target on the stock that is well above Wall Street’s average.
Tesla (TSLA) stock surged to a three-year high Tuesday after Morgan Stanley analyst Adam Jonas increased his price target for the automaker to $400 from $310 and affirmed it as his “Top Pick.”
Shares of the electric vehicle (EV) company advanced more than 3% in recent trading to above $406. They earlier hit $409.72, their highest level since Nov. 5, 2021, a day after they set an all-time intraday record of $414.50.
Wall Street’s average target is closer to $290, according to Visible Alpha data, with the new Morgan Stanley target among the highest the site tracks.
The Elon Musk-led company’s shares are up about 65% this year—but all of the gains have come since Election Day. Musk, Tesla’s chief executive officer, is an outspoken backer of Donald Trump and recently was chosen by the president-elect to co-lead the newly proposed Department of Government Efficiency (DOGE).
Trump has vowed to roll back vehicle emissions standards and halt other government support for EVs. Some analysts believe Tesla could benefit if the new administration ends the Biden-era $7,500 EV tax credit given its longer history of making profitable EVs, but Trump’s pro-tariff stance may hit the company’s China sales.
“Elon Musk’s entry into the political sphere has expanded investor thinking around Tesla’s fundamental outlook,” Jonas wrote Tuesday.
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