Tesla (NASDAQ: Tesla) The stock is seeing strong upward momentum in Friday trading. electric car (Eve) The company’s stock price rose 6.9% as of 3:15 PM ET on the back of a 1.2% gain for the company’s stock. Standard & Poor’s 500 The index rose 1.7% Nasdaq Composite index.
In addition to the bullish momentum of the broader market today, Tesla is gaining more ground thanks to positive industry reports and analyst coverage. In addition to a Reuters report suggesting the electric vehicle specialist was seeing strong sales in China, the company’s stock is also getting a boost from a price target increase from Canaccord.
Reuters recently published a report on Tesla’s sales performance in China through 2024, and the analysis paints a bullish picture. Car sales in China rose 8.8% year-on-year to more than 657,000 cars. Better yet, the report shows that auto sales accelerated above that rate to post growth of 12.8% and sales of 83,000 units last month. The results seem particularly relevant in the wake of Tesla’s recent vehicle deliveries and production report for the fourth quarter of 2024.
Tesla’s Q4 update announced that the company produced 459,000 vehicles and delivered 495,000 vehicles in the period. While the performance wasn’t as bad as more recent forecasts had predicted, the results came in below average analyst estimates. This performance brought the company’s total deliveries through 2024 to 1.79 million vehicles, below Wall Street’s average forecast for deliveries of 1.806 million vehicles. Tesla’s 2024 deliveries were less than the nearly 1.8 million vehicles delivered in 2023, marking the first time the company has seen an overall decline in unit sales. With total deliveries falling below expectations, signs of momentum in China represent an important bright spot.
In a note published before the market open today, Canaccord maintained a buy rating on Tesla and raised its one-year price target on the stock from $298 per share to $404 per share. After the stock’s gains today, the new price target actually indicates a decline of about 0.4%.
Canaccord analysts believe Tesla’s business fundamentals justify valuation multiples that are in the same ballpark as peers from other tech giants including Nvidia, appleand Amazon. Importantly, the company believes Tesla is positioned to capitalize on multi-generational growth opportunities in categories including self-driving vehicles, batteries and robotics. So, while Tesla’s one-year price target implied limited upside at press time and has already been surpassed, Canaccord believes the electric vehicle leader has the makings to win in the long term.
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Why is Tesla stock rising today? Originally published by The Motley Fool