Tesla stock jumped early Monday, attempting to add to a nearly 13% gain last week, as the EV giant eyes a level it hasn't reached since early 2022.
TSLA shares angled higher, hitting 404.80 early, before paring those gains advancing 0.15% to 389.79 during market action on Monday. Tesla stock last touched 400 in January 2022, according to MarketSurge charts. Elon Musk's company hit an all-time high of 414.50 on Nov. 4, 2021. That day it closed at 409.97.
TSLA surged 5.3% to 389.22 on Friday, part of a 12.8% gain last week. The stock is on a 55% tear since Donald Trump's election win, as investors speculate that self-driving is coming soon, with the Trump administration easing the regulatory path for autonomous vehicles.
Tesla stock popped 3.2% to 369.49 on Thursday, clearing a recent range, which could have offered an add-on entry for existing TSLA holders. However, the stock is more than 70% above its 200-day moving average, a red flag of a stock becoming overextended.
Bank of America analyst John Murphy on Thursday raised his Tesla stock price target to 400, up from 350, and maintained a buy rating. The analyst hiked his price target after visiting Tesla's Texas gigafactory.
Tesla is well-positioned to grow in 2025 with its core EV business and launch of its robotaxi, according to Murphy. The analyst added that the Optimus humanoid robot is "real" adding that "development" is "poised to accelerate."
Tesla Deliveries
The EV giant has said it expects "slight" vehicle deliveries growth this year, but with the end of the fourth quarter fast approaching, Tesla finds itself looking for answers with unit sales lagging in the U.S. and Europe.
The company saw vehicle deliveries rise 38% to 1.8 million in 2023 and while Tesla has said that sort of increase this year is out of reach, it is predicting growth in its automobile segment.
"Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024," Tesla said in its third-quarter earnings release.
Looking further out, Chief Executive Elon Musk proclaimed on the Q3 earnings call that vehicle sales could grow "20%-30%" in 2025. Rumors circulated over the weekend that Tesla plans to release a "Model Q" hatchback next year with a price tag around $30,000.
With Tesla predicting slight vehicle delivery growth in 2024 vs. 2023's 1.81 million, the EV giant needs far more than the Q4 2023 record of 484,507 deliveries. Analyst consensus currently forecasts 497,000 vehicle deliveries in Q4 and 1.79 million for 2024, according to FactSet.
Goldman Sachs analyst Mark Delaney wrote early Wednesday that data out of the U.S., Europe, and China show mixed demand trends for Tesla.
Delaney said that Tesla is not currently tracking to meet its objective to grow vehicle deliveries in 2024, which would require 515,000 or more units in Q4. The analyst lowered his Q4 deliveries estimate to 510,000, down from 515,000. The firm keeps a neutral rating on Tesla with a $250 price target.
The China Boost
A rebound for Tesla demand in China continues in Q4, after the key EV market buoyed the company's strong performance in the third quarter.
The company sold 78,856 China-made vehicles in November, including 5,366 exported, according to data released Monday by the China Passenger Car Association. That marks the best month this year for domestic sales in China and up 12% vs. the 65,504 vehicles in the same month last year.
Troy Teslike, whose delivery estimates and data tracking are highly respected among retail Tesla investors, expects U.S. and Europe sales to drop by more than 30,000 units in 2024 vs. 2023.
Teslike sees China sales growing by more than 48,000 units.
"There is no need for celebration over the China numbers when sales are down in the U.S. and Europe," Teslike wrote on X last week.
Tesla stock ranks first in the 35-member IBD Auto Manufacturers industry group. The stock has a 92 Composite Rating out of a best-possible 99. Shares also have a 97 Relative Strength Rating and a 78 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.
The Lithium Price Cycle Has Bottomed. What To Expect Next For These Stocks.
