Tesla Set For Electric Start As Stock Surges 6% Premarket: What's Going On?

Shares of electric vehicle maker Tesla, Inc. TSLA are rallying over 6% in premarket trading on Monday, possibly thanks to a couple of catalysts.

Morgan Stanley analyst Adam Jonas on Sunday upgraded Tesla stock from ‘Equal-Weight’ and raised the 12-month price target from $250 to a Street high of $400, a 60% boost. The analyst based his bullish stance on the potential that Tesla’s Dojo supercomputer promises.

“We believe that Dojo can add up to $500B to @Tesla’s enterprise value, expressed through a faster adoption rate in Mobility (Robotaxi) and Network Services (SaaS),” Jonas said in the note.

The stock also received support from local Chinese media reports that said Tesla could raise Model Y prices next month.

This should calm the frazzled nerves of investors, who are concerned about the lack of appreciable impact the price moves are having on volume and the margin impact of the price cuts.

In premarket trading, Tesla rallied 6.86% to $265.55, according to Benzinga Pro data. If the gains hold in the regular session, the stock could be on track to scale the highest level since Aug. 1.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

See Also: Everything You Need To Know About Tesla Stock