Tesla’s stock has finally crossed the $400 per share mark for the first time since January 2022, closing at $389.22 on Friday, marking its highest point in nearly two years. With investors and analysts alike feeling optimistic, the electric vehicle giant’s market capitalization has once again risen to $1.2 trillion.
Elon Musk has commented upon the future of Tesla, even mentioning the expansion of driverless Teslas around the world. The stock’s performance gives a mixed view of both investor confidence and speculative trading going on, with some gaining vindication in their long-term investment in Tesla while others expect further volatility ahead.
The recent price spike has sparked predictions that Tesla’s stock could soon hit new all-time highs, with some analysts speculating it may even reach $420.69. As per reports, Bank of America (BofA) analyst John Murphy raised his price target for the stock from $350 to $400 following a visit to Tesla’s gigafactory in Austin, Texas. Murphy’s confidence stems from Tesla’s expanding market reach and upcoming product launches, including a low-cost electric vehicle priced under $30,000, expected in 2025.
Besides the growth in electric vehicles, the development of full-self-driving technology by Tesla and the Optimus robot are also attracting investors. Murphy emphasized the critical improvements in Tesla’s self-driving capabilities and added that it is getting close to when the company can start its robotaxi business. Tesla expects 1,000 Optimus robots by the end of 2025 and has set plans to scale production more in the coming years.
While investor confidence is high, the risks for short sellers have been a concern, and some believe that the volatility in the stock may continue. Analysts believe Tesla might raise capital through a new share sale to fund robotics, artificial intelligence, and its expanding EV market. The stock has increased by 56.6% this year, outpacing the S&P 500’s 27.7% gain.
