Tesla Stock Hits Record, Key Analyst Raises Price Targets

Previously, Tesla shared a new video showing its humanoid robot, Optimus, reaching a big milestone: walking by itself outdoors. Some of these robots are already being used in Tesla's factories. CEO Elon Musk said the company might start selling them to other customers next year, with each robot expected to cost between $25,000 and $30,000.

Also, Tesla's Investor Relations head, Travis Axelrod, told investors at a Deutsche Bank meeting that the affordable Model Q could be ready for delivery in the first half of next year. The car, called "Redwood" inside the company, will cost much less to make than the Model 3 - about half as much.

Morgan Stanley analyst Adam Jonas recently raised Tesla's price target from $310 to $400, calling it a "top pick." According to Jonas, this adjustment reflects excitement about Tesla's role in emerging industries like artificial intelligence (AI), renewable energy, robotics, and on-shoring production. These sectors are key drivers for the company's growth in a world increasingly focused on green energy and advanced technology.

Jonas also pointed to CEO Elon Musk's rising influence in the political sphere as a factor boosting investor confidence. Musk's presence in politics has expanded perceptions of Tesla's long-term potential, adding a new layer of optimism to the company's outlook. However, Jonas remains cautious about Tesla's short-term progress in autonomous driving, citing challenges in technology refinement, regulatory approvals, and deployment complexities in urban environments.

In addition, Bank of America analyst John Murphy echoed this optimism, raising Tesla's price target from $350 to $400 and maintaining a "Buy" rating. After visiting Tesla's Gigafactory in Texas, Murphy highlighted the company's advancements in electric vehicles (EVs), autonomous driving, and robotics. He also emphasized Tesla's robotaxi plans and the potential of its humanoid robot project, Optimus, as significant growth drivers.

Tesla's performance in China is another bright spot. Recent insurance registration data shows a sharp increase, marking one of the company's best weeks in the Chinese market. In November alone, Tesla sold 78,856 vehicles in China, a 12% year-over-year increase, setting a new monthly sales record.

While domestic sales in China are booming, Tesla’s export volume has declined, suggesting a strategic shift toward focusing on the local market. Tesla expects Chinese sales to grow by over 48,000 units in 2024, offsetting potential declines in the U.S. and European markets.

Despite the optimism from Morgan Stanley and Bank of America, some analysts remain cautious. Goldman Sachs' Mark Delaney recently lowered expectations for Tesla's 2024 growth, projecting flat year-over-year EV deliveries. While Tesla management anticipates Q4 deliveries of at least 515,000 vehicles, Delaney estimates a slightly lower figure of 510,000. He maintains a "Hold" rating with a price target of $250, reflecting a more conservative outlook.