Tesla Stock Hits Three-Year High as Morgan Stanley Raises Price Target

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Samiat

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Nov 12, 2024
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Tesla Stock Hits Three-Year High as Morgan Stanley Raises Price Target

Key Highlights:

Tesla's shares soared to their highest level in three years on Tuesday, fueled by a bullish outlook from Morgan Stanley analyst Adam Jonas.

The stock reached nearly $410, its highest since November 2021.

Jonas increased Tesla's price target to $400, well above Wall Street's average estimate.


Tesla (TSLA) shares climbed over 3% on Tuesday, reaching $406 during trading and peaking at $409.72—marking their highest level since November 5, 2021. This milestone comes as Morgan Stanley's Adam Jonas raised his price target for the EV maker to $400 from $310, maintaining it as his "Top Pick."

Election Impact on Tesla’s Rally

Tesla’s stock has gained approximately 65% this year, with the entire surge occurring after Election Day. CEO Elon Musk, a vocal supporter of Donald Trump, was recently appointed to co-lead the proposed Department of Government Efficiency (DOGE) under the incoming administration.

Trump’s promise to roll back vehicle emissions regulations and eliminate other government incentives for EVs, such as the $7,500 tax credit, could work in Tesla’s favor due to its strong track record of profitability in the EV sector. However, the pro-tariff policies Trump has advocated may pose risks to Tesla’s sales in China, one of its key markets.

"Elon Musk's involvement in politics has broadened how investors view Tesla’s potential," Jonas noted in his report on Tuesday.

Tesla's position at the intersection of policy shifts and market dynamics makes it a focal point for investors, with its recent performance reflecting optimism about its long-term growth.