Tesla (TSLA) shares closed at an all-time high on Wednesday, climbing to $424.77 and touching an intraday peak of $424.88. The electric vehicle (EV) giant’s stock has surged 69% since President-elect Donald Trump’s victory last month, underscoring a remarkable turnaround for the company.
The rally reflects investor optimism fueled by CEO Elon Musk’s strategic alignment with Trump’s administration, positioning Tesla for potential policy advantages. Analysts view Musk’s anticipated influence on federal regulations as a key factor boosting confidence in Tesla’s growth trajectory; as the entrepreneur became the first person in history to hit a net worth of $400 billion.
Tesla’s previous record close was $409.97 on November 4, 2021.
China Sales and Incentives Drive Growth
Contributing to Tesla’s momentum are robust sales figures from China, its largest overseas market. Tesla reported its highest weekly sales for Q4 during the first week of December, with 21,900 EVs sold. The milestone follows a stellar November, during which Tesla sold 73,000 units—the company’s best month this year, according to Reuters.
Tesla has also implemented aggressive sales incentives in China, including 0% interest loans for five years and 10,000 yuan ($1,400) rebates for new Model Y purchases. These efforts have bolstered the company’s market share amidst growing competition in the EV sector.
Bullish Analyst Revisions Signal Confidence
The stock’s rise has prompted bullish outlooks from analysts, with Deutsche Bank, Bank of America, and Morgan Stanley raising their price targets.
Edison Yu of Deutsche Bank increased his price target to $370 from $295, citing optimism around Tesla’s autonomy initiatives and potential regulatory support for its Robotaxi deployment under a more business-friendly administration.
Adam Jonas of Morgan Stanley reiterated Tesla as a “top pick”, raising his price target to $400 from $310. Jonas highlighted investor enthusiasm for Tesla’s ventures into AI, renewable energy, and robotics, suggesting Musk’s expanding influence could open opportunities beyond the automotive sector.
What’s Next for Tesla?
Looking ahead, Tesla is preparing to debut its highly anticipated Model Q, a budget-friendly EV, next year. Analysts also expect federal support to accelerate the approval of Tesla’s Full Self-Driving (FSD) software and Robotaxi services, positioning the company for continued growth.
As Tesla cements its status as a leader in the EV market, the company’s stock remains a bellwether for innovation, policy alignment, and global expansion.
