Tesla Inc shares are experiencing a significant surge, with the company’s stock trading higher on Monday. This increase can be attributed to two primary factors: the raising of the price target by Evercore ISI and the reported increase in production at the company’s Shanghai facility.
Recent Developments
- Evercore ISI analyst Chris McNally has maintained an In-Line rating on Tesla while raising the price target from $235 to $300.
- Tesla has a consensus Buy rating from analysts, with an average price target of $349.50.
- Other recent analyst changes include a price target raise to $483 from Stifel and a price target increase to $247 from UBS.
Production Ramp-Up
Separately, it has been reported that Tesla vice president Tao Lin announced that the company’s Shanghai Gigafactory has begun a production ramp-up in the fourth quarter. The Shanghai facility is Tesla’s largest manufacturing hub globally. This decision to ramp up production comes as the company’s China-made EV sales are beginning to rebound, climbing 2.8% in September compared to the previous year.
Market Analysis
The positive analyst update combined with the renewed activity at Tesla’s Shanghai plant seems to be boosting investor confidence, with shares up nearly 4% at last check.
- The price action in Tesla shares suggests a bullish trend, confirmed by higher highs and higher lows.
- Volume is robust at approximately 46 million shares, indicating strong buying interest.
- The RSI is calculated at 66.25, approaching overbought territory, which may signal a pullback soon.
- The MACD shows a bullish crossover, but the lines are converging, hinting at a potential slowdown in momentum.
Fundamentals and Price Action
Benzinga Edge rankings show moderate fundamentals, with a:
- Value ranking of 4.39/100
- Growth ranking of 75.63/100
- Quality ranking of 64.52/100
- Momentum ranking of 89.78/100
Tesla shares were up 3.87% at $429.51 on Monday, according to recent data.
Conclusion
The surge in Tesla shares can be attributed to the combination of positive analyst updates and increased production at the company’s Shanghai facility. As the company’s China-made EV sales continue to rebound, investor confidence is boosted, leading to a bullish trend in the market. However, with the RSI approaching overbought territory, a potential pullback may be on the horizon.