Brandon Bell/Getty Images
-
Shares of Tesla rose to a three-year high on Tuesday, lifted by an upbeat report from Morgan Stanley analyst Adam Jonas.
-
The stock earlier rose to nearly $410, hitting its highest level since November 2021.
-
Jonas set a $400 price target for the stock, which is well above the Wall Street average.
Tesla (TSLAShares rose to a three-year high on Tuesday after Morgan Stanley analyst Adam Jonas raised his price target on the automaker from $310 to $400 and confirmed it as his “top pick.”
Shares of the electric vehicle (EV) company rose more than 3% to above $406 in recent trading. They previously reached $409.72, the highest level since November 5, 2021, a day after setting an all-time intraday record of $414.50.
According to data from Visible Alpha, Wall Street’s average target is closer to $290, with Morgan Stanley’s new target among the highest the site tracks.
Shares of the Elon Musk-led company are up about 65% this year, but all the gains have been made since Election Day. Tesla CEO Musk is an outspoken supporter of Donald Trump and was recently chosen by the president-elect to co-lead the newly proposed Department of Government Efficiency (DOGE).
Trump has promised to roll back vehicle emissions standards and end other government support for electric vehicles. Some analysts believe Tesla could benefit if the new administration ends the Biden-era $7,500 tax credit for EVs, given its longer history of making profitable electric vehicles, but the pro- Trump’s tariff stance could negatively impact the company’s Chinese sales.
“Elon Musk’s entry into the political sphere has expanded investor thinking around Tesla’s fundamental vision,” Jonas wrote on Tuesday.
Read the original article on Investopedia
