Shares of electric vehicle leader Tesla witnessed a 1.7% increase in morning trading, following an upgrade from Baird, which raised its rating from “Neutral” to “Outperform” and significantly lifted its price target. Analyst Ben Kallo increased the price target for Tesla from $320 to $548, marking this as a new high on Wall Street. Interestingly, Baird’s decision to upgrade the stock focused less on recent quarterly performances, which were described as “less-than-stellar.” Instead, the firm emphasized how investor sentiment is shifting toward Tesla’s prospective role in the anticipated “physical AI” era, positioning the company as a leader in this emerging technological landscape and suggesting a focus on long-term growth strategies.
After an initial surge in share price post-upgrade, Tesla’s stock settled at $423.81, reflecting a 1.7% increase from the previous closing price. However, the stock’s volatility remains significant, with 46 instances of fluctuations exceeding 5% in the past year. Today’s movement indicates that while the news is regarded as notable, it may not fundamentally alter the broader perception of Tesla’s business.
This latest surge follows recent news of CEO Elon Musk’s substantial investment in Tesla, as he purchased approximately $1 billion worth of stock, marking his first open-market share acquisition since February 2020 and the largest in terms of value. The disclosure of Musk’s purchase, involving around 2.57 million shares, drove investor enthusiasm and prompted a nearly 6% increase in Tesla’s stock just days ago. Analyst Dan Ives from Wedbush described Musk’s investment as a strong signal of confidence for Tesla supporters, underscoring Musk’s commitment to the company’s AI ventures.
Further boosting the positive outlook, Barclays raised its third-quarter delivery estimates for Tesla to 465,000 vehicles, surpassing the prevailing consensus of 430,000 units. This forecast update correlates with Tesla’s commitment to ramping up production at its Berlin factory to satisfy surging European demand.
Despite an 11.7% increase in share value since the beginning of the year, Tesla’s stock price of $423.81 currently sits 11.7% lower than its 52-week high of $479.86 recorded in December 2024. For investors who purchased $1,000 in Tesla shares five years ago, the investment would have grown to a remarkable $2,829.
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