Tesla Inc. TSLA shares rose more than 2% in after-hours trading on Monday, driven by Morgan Stanley’s increase in its price target and positive developments in its Full Self-Driving technology, according to prominent Tesla bull Gary Black.
What Happened: Morgan Stanley raised its price target on Tesla to $430 from $400 and increased its bull case to $800, citing opportunities in autonomous rideshare and robotaxi services, noted Black, managing partner of The Future Fund LLC, in posts on X.
The stock’s after-hours gains were also supported by favorable feedback on Tesla’s refreshed Model Y and significant improvements in its Full Self-Driving technology, Black said. FSD version 13.2 showed a 750% efficacy increase to 724 miles per disengagement on highways compared to 89 miles in the previous version, according to a post shared by CEO Elon Musk.
These developments come as Tesla navigates both challenges and opportunities. The company recently faced scrutiny over CEO Musk’s $56 billion pay package, which was rejected by a Delaware judge in December. The controversy led Europe’s largest pension fund, Stichting Pensioenfonds ABP, to sell its entire $585 million Tesla stake in the third quarter of 2024.
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Why It Matters: Despite these headwinds, Tesla’s stock has shown remarkable strength. It is currently trading around $387, up over 45% from its third-quarter lows.
The company maintains strong support from Wall Street, with recent analyst coverage remaining largely positive. JPMorgan Chase & Co. CEO Jamie Dimon recently praised Musk as “an extraordinary talent,” citing achievements at Tesla and SpaceX.
Black also addressed concerns about potential regulatory changes under President-elect Donald Trump, suggesting that any rollback of President Joe Biden-era emissions targets would likely have minimal impact on Tesla’s zero-emission vehicle credit sales, as analysts had already forecast these revenues to decline in coming years.
Price Action: Tesla’s stock closed at $403.31 on Monday, gaining 2.17% for the day. In after-hours trading, the stock climbed further, adding 2.42%. Over the past year, Tesla’s stock has surged an impressive 83.40%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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