Tesla Stock Climbs on Analyst Upgrade, Shanghai Production Boost
Evercore ISI raises its price target to $300, citing a significant production ramp-up at the automaker's key Shanghai Gigafactory.
Shares of Tesla, Inc. (TSLA) are rallying after a bullish analyst revision and positive news from its largest manufacturing hub. The electric vehicle maker saw its stock trade higher following a decision by , up from a previous target of $235, while maintaining an 'In-Line' rating on the shares.
The optimistic revision is underpinned by operational achievements in China. A Tesla executive confirmed that its , signaling a strong finish to the year. This facility is a cornerstone of Tesla's global strategy, serving as the primary export hub and having an annual capacity of over 950,000 vehicles.
Investor confidence has been further bolstered by recent delivery figures from the plant. The Shanghai factory delivered a record 90,812 vehicles in September, a 9.2% increase from the previous month and a reversal from a two-month decline. This momentum is critical as Tesla navigates an increasingly competitive EV market in China.
The price target adjustment from Evercore ISI analyst Chris McNally reflects growing confidence in the company's ability to scale production and meet demand. While the firm's 'In-Line' rating suggests a neutral stance, the significant target increase points to a positive reassessment of the company's near-term earnings potential. The Shanghai facility's ability to consistently increase output, as noted by its , is a key factor in this analysis.
As Tesla heads into the final months of the year, investors will be closely watching for official Q4 delivery numbers to see if the translates into sustained growth and market share gains.