Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Tesla Stock Is Soaring (Again)

By Daniel Sparks - Jan 8, 2021 at 12:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares are already up 25% this year.

What happened

Shares of Tesla ( TSLA -0.79% ) are continuing their parabolic rise today, making the electric-vehicle (EV) producer more valuable than Facebook and further fortifying CEO Elon Musk's newly held position as the world's richest person. This adds to the stock's incredible year-to-date momentum. Including a 7.4% gain as of 11 a.m. EST on Friday, shares are now up 25% already in 2021.

The stock's gain comes as Evercore ISI analyst Chris McNally upgraded his rating for it and admitted the research firm has "been on the considerably wrong side of TSLA for over a year now." 

Tesla vehicles.

Image source: Tesla.

So what

McNally set a $650 12-month price target for the stock and upgraded his rating on shares to "in line," which is like a hold rating. This is up from a previous target of $225 and a sell-equivalent underperform rating.

The analyst believes the company is viewed as a tech company, leading in the nascent EV space and boasting optionality in other areas like self-driving technology, battery storage, and electric motors.

Now what

Though Tesla recently reported record fourth-quarter deliveries, there's still uncertainty about the company's financial performance during this important period. Investors can get an update on Tesla's business when the company reports its fourth-quarter earnings, which will likely be around the end of January. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$1,086.36 (-0.79%) $-8.64

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/02/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.