what happened
Shares of Tesla (NASDAQ: TSLA) rose higher on Wednesday, increasing the early momentum of the stock in 2021. Shares rose to 5.3%, but from 12:35 EST they rose 4.8%.
The gain is likely due to a combination of broader market power in renewable energy stocks and an improved target for analysts for Tesla stocks.
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Approximately
Renewable energy stocks such as Tesla traded higher on Wednesday, likely due to speculation that Democrats have a chance of winning the Senate majority. Since the party is usually more willing to help subsidize growth in green energy than Republicans, investors may speculate that a democratic majority could lead to legislation that favors Tesla.
In addition, stocks are likely to trade higher due to Morgan Stanley Analyst Adam Jonas on Tuesday afternoon decided to upgrade his 12-month price target for Tesla share from $ 540 to $ 810. The analyst says his positive view is supported by the company’s recent capital increase, strong growth in fourth-quarter deliveries and a rosier outlook for Tesla’s long-term growth potential in vehicle deliveries.
Shares in the growth stock are “richly valued for a reason”, the analyst told investors.
Now what
Tesla now has a market capitalization of more than $ 700 billion, which determines how heavily the market bets on the automaker. Although the valuation of the company does not make sense compared to the overdue finances, investors risk that Tesla’s sales could continue to grow at high growth rates for years to come. In addition, some investors may expect Tesla to eventually earn significant revenue and profits from the self-management technology it operates.