Tesla (NASDAQ:TSLA) stock is trading higher on Tuesday. Shares increased as much as 4.4%, and are up about 4.1% at the time of this writing. The stock's rise comes as Tesla announces an unprecedented safety rating for its Model X SUV, and an analyst hikes his price target for Tesla stock.
Tuesday morning, Tesla said its Model X was the first SUV to be awarded a 5-star rating in every category and every subcategory from the U.S. National Highway Traffic Safety Administration (NHTSA). Thanks to the fundamental superiority of the all-electric design of Tesla's vehicles, Model X achieved a lower probability of serious injury than any SUV, and any car except Tesla's Model S sedan. Furthermore, Model X was found to be the safest SUV in history by a significant margin.
In addition, Berenberg analyst Alexander Haissl gave Tesla stock a $464 12-month price target, CNBC reported Tuesday morning. "[C]omplacency" from big automakers toward electric vehicles will give Tesla a "near-monopolistic opportunity to gain market share and outcompete the incumbent automotive industry," Haissl said in a note to clients.
Tesla will be put to the test in the second half of 2017, as it brings its Model 3 to market in July and strives to hit its target production rate for the Model 3 of 5,000 vehicles per week before the end of the year.