What happened
Actions of Tesla (NASDAQ: TSLA) they rose further on Wednesday, extending the initial stock momentum in 2021. Shares rose 5.3%, but rose 4.8% as of 12:35 pm EST.
The stock gain is likely due to a combination of greater market strength in renewable energy stocks and an updated analyst price target for Tesla shares.
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And
Renewable energy stocks like Tesla are trading higher on Wednesday, probably due to speculation that Democrats have a chance to win a majority in the Senate. With the party typically more willing to help subsidize green energy growth than Republicans, investors may be speculating that a Democratic majority could lead to legislation that benefits Tesla.
In addition, stocks are likely to be trading higher because of the Morgan Stanley analyst Adam Jonas’s move on Tuesday afternoon to update his 12-month target price for Tesla’s shares from $ 540 to $ 810. The analyst says his optimistic outlook is supported by the company’s recent strong capital increase growth in fourth quarter deliveries and a more optimistic outlook for Tesla’s long-term growth potential in vehicle deliveries.
The stocks of the growing stocks are “richly valued for a reason,” the analyst told investors.
What now
Tesla now has a market capitalization in excess of $ 700 billion, capturing how strongly the market is betting on the automaker. Although the company’s valuation doesn’t make sense when compared to financial results, investors are betting that Tesla’s sales may continue to grow at high growth rates in the coming years. In addition, some investors may be hoping that Tesla will eventually generate substantial revenue and profits from the self-targeting technology it is working on.