Tesla Stock Climbs Over 2% In Thursday Pre-Market: What's Going On? Tesla's Stock Climbs Over 2% In Thursday Pre-Market As Analysts Predicts Growth Despite Deteriorating Brand Image - Ford Motor (NYSE:F), General Motors (NYSE:GM)

Tesla Inc. TSLA is trading 2.2% higher in pre-market on Thursday following upbeat analyst calls on the stock as well as news over new EV taxes to finance road repairs which could impact its rivals.

What Happened: Today, Wedbush Securities analyst Dan Ives maintained his bullish stance on Tesla and his $550 price target on the stock, despite concerns over Musk’s dedication to DOGE, causing potential brand deterioration.

Similarly, on Wednesday, Analyst Mickey Legg from Benchmark Equity placed a ‘Buy’ rating and a $475 price target on the stock. He identified major growth drivers for Tesla in the fields of autonomous vehicles, robotics, and energy generation and storage.

In another development, the U.S. Senate Republicans, on Wednesday, proposed two bills to remove the country’s $7,500 electric vehicle tax credit and introduce a new $1,000 tax on EVs to support road maintenance. This is likely to come as a blow to Tesla rivals like General Motors GM and Ford Motor F who have been pushing for a gradual phase out of the EV tax credits. Tesla has always maintained its stance on the elimination of EV subsidies.

Why It Matters: Tesla’s growth prospects have been a topic of discussion, especially with CEO Elon Musk’s involvement in various ventures.

Despite regulatory uncertainty and increasing EV competition putting downward pressure on vehicle pricing, analyst Mickey Legg is confident that Tesla’s product range will help mitigate these challenges. With $36.5 billion in cash and investments, the Elon Musk-led company is well-placed to pursue significant expansion possibilities, as per Legg.

These events highlight the dynamic nature of Tesla’s operations and the potential impact of external factors on its growth trajectory.