Tesla’s stock has climbed more than 8% following optimistic forecasts from prominent investor Gary Black, who cited multiple growth catalysts for the electric vehicle maker in 2025. The key drivers of growth include:
- Tesla’s upcoming $30,000-$35,000 vehicle, which is expected to expand the company’s total addressable market in the compact segment
- Potential regulatory tailwinds under the President-elect Donald Trump administration for autonomous driving approval
- The Delaware Supreme Court’s recent decision on CEO Elon Musk’s compensation package
What Happened
Gary Black, managing partner of The Future Fund LLC, highlighted Tesla’s strengths, saying “Tesla catalysts are the strongest collection I’ve seen in years.” He noted that the company’s earnings per share are expected to reach $3.70 in fiscal 2025, surpassing the consensus estimate of $3.25. The firm maintains its $380 price target while noting potential upside if Federal Reserve interest rate cuts materialize.
Tesla’s Market Share
Tesla dominated U.S. electric vehicle sales in 2024, with its Model Y SUV capturing 28.6% market share. The company’s stock surge coincided with RBC raising its price target to $440 from $313, contributing to Wednesday’s broader market rally.
Broader EV Market
The broader EV market shows signs of strength, with industry researcher Cox Automotive expecting electric vehicles to comprise 10% of total U.S. auto sales in 2025, up from 8.1% in 2024. Despite potential policy uncertainties under the incoming Trump administration, Tesla’s stock surge is a positive sign for the company and the industry as a whole.
Price Action
Tesla’s stock closed at $428.22 on Wednesday, marking an 8.04% gain. In after-hours trading, the stock slightly dipped by 0.61%. Over the past year, Tesla shares have surged an impressive 94.73%.
Conclusion
Tesla’s stock surge is a result of optimistic forecasts and strong market share. With the company’s upcoming $30,000-$35,000 vehicle and potential regulatory tailwinds, Tesla is well-positioned for growth in 2025. As the broader EV market continues to show signs of strength, Tesla’s stock is likely to remain a top performer in the industry.