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Tesla (TSLA -0.75%) experienced a notable rise in its stock price, increasing nearly 5% in morning trading, driven by favorable electric vehicle (EV) sales reports and a positive assessment from a financial expert.
By 2:22 p.m. ET, Tesla shares had moderated but still showed a 2% increase.
Is an $800 Stock Price Possible for Tesla?
A recent analysis by Morgan Stanley has elevated Tesla’s price target from $400 to $430 per share. The analysts outlined an optimistic scenario wherein the price target could soar to $800, driven largely by the company’s ambitions surrounding robotaxi operations.
Another significant factor influencing the stock’s trajectory is a report from Rho Motion, an EV research organization. The report highlighted December as the fourth consecutive month setting a global sales record for passenger vehicles and light-duty EVs. The analysis noted that all key markets experienced both month-over-month and year-over-year sales growth during December, culminating in over 1.9 million EVs sold—a 5% increase compared to previous records. This figure encompasses both battery electric vehicles and plug-in hybrids.
This upward trend is promising for Tesla, a leader in the global EV market. However, it alone isn’t sufficient to push the stock price to $800. According to Morgan Stanley’s lead analyst Adam Jonas, there is a viable route to achieve that target. He underscores the growing significance of artificial intelligence (AI) in shaping Tesla’s future operations. Jonas points out that the development of a fully autonomous robotaxi network could be the key driver for the stock’s appreciation towards his optimistic price target.
While investors may not see an immediate jump to $800, it’s crucial for them to keep an eye on Tesla’s advancements in data utilization and AI technologies aimed at deploying a comprehensive self-driving software suite. Should Tesla successfully roll out this software to its vehicle owners, the realization of a highly lucrative fleet of autonomous robotaxis could be on the horizon.
Source
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