Tesla (TSLA 4.69%) stock has been marching sharply higher since the U.S. presidential election last month, even with mixed expectations on how the incoming Trump administration will view electric vehicle (EV) companies.
But CEO Elon Musk’s strong public support of Donald Trump has investors piling into Tesla shares. The stock has soared by about 60% since the election. Wall Street is also showing support as the stock approaches the record-high closing price just shy of $410 per share it hit in late 2021.
Today, Tesla stock gained another 5% before paring back some of that jump. As of 12:15 p.m. ET, shares were still 3.7% higher on the day. But it’s not just because of Musk’s relationship with Trump.
Strong year-ending Tesla sales
Morgan Stanley analyst Adam Jonas has long been bullish on Tesla stock. Today, he raised his price target on the stock by $90 to $400 per share and called Tesla his top stock to buy, according to Barron’s.
One reason is that Tesla looks to continue strong sales growth in China. That country reportedly accounted for about 40% of Tesla’s third-quarter sales volume. And data shows that the fourth quarter is looking even stronger for Tesla’s China sales, with less than a month left in the period.
Accelerating Tesla sales and confidence in its technology both have investors driving the stock toward its record high. Musk himself has said investors who don’t think Tesla can solve autonomous vehicle technology shouldn’t invest in the stock. And Musk’s influence in the Trump administration could help push a plan for federal standards to ease a transition to self-driving cars.
So is Tesla a buy?
Investors who believe Tesla can impress consumers with its self-driving vehicles may see a clearer path for the company to monetize the technology. And as a subscription service, self-driving could be more valuable than the car sales themselves. That has the stock pushing toward its record today.
