Tesla Inc. (TSLA) shares have surged past the $400 mark in overnight trading, reaching a high of $401.16 as of 12:11 am EST on Monday in New York. This brings the stock close to its all-time high of $407.36 set in November 2021.
What’s Behind the Surge
The electric vehicle maker’s stock has seen remarkable momentum, closing Friday at $389.22, up 5.34%. A wave of bullish analyst reports has contributed to this surge, led by Bank of America Securities raising its price target to $400 from $350 while maintaining a “buy” rating.
Bank of America Analyst Weighs In
BofA Senior Automotive Analyst John Murphy cited a recent visit to Tesla’s Texas gigafactory and experience with the company’s Full Self-Driving (FSD) version 13.2 as key factors behind the upgrade. This development has fueled optimism among investors, driving the stock’s recent gains.
Analyst Upgrades and Downgrades
- Longtime Tesla bear Craig Irwin of Roth MKM upgraded the stock to “buy” from “neutral”, dramatically raising his price target to $380 from $85.
- Guggenheim maintained its “sell” rating while lifting its target to $175 from $156.
- The consensus price target stands at $248.56, based on 34 analyst ratings, ranging from Stifel’s high of $411 to GLJ Research’s low of $24.86.
Tesla’s Valuation and Future Plans
The stock’s current valuation reflects a price-earnings ratio of 106.72, with shares trading well above their 52-week low of $138.80. Analysts are particularly focused on Tesla’s planned launch of a lower-cost EV model next year and the continued development of its Optimus humanoid robot project.
Stock Performance
- Current price: $401.16
- 52-week high: $407.36
- 52-week low: $138.80
- Price-earnings ratio: 106.72