Global EV Sales and Potential TikTok Deal Boost Investor Optimism
Tesla (TSLA) shares rose over 3% on Tuesday, fueled by encouraging electric vehicle (EV) sales data and reports that Chinese authorities may allow Elon Musk to purchase the U.S. operations of TikTok.
According to Bloomberg and The Wall Street Journal, Chinese officials have discussed selling TikTok’s U.S. unit, owned by ByteDance, to Musk. This move would serve as a contingency plan ahead of a January 19 deadline for TikTok to divest or face a potential U.S. ban. A TikTok spokesperson dismissed the reports as “pure fiction.”
The stock’s momentum builds on Monday’s gains, where Tesla shares climbed over 2% in late trading. Supporting this bullish trend, research firm Rho Motion reported a 25.6% year-on-year increase in global sales of fully electric and plug-in hybrid vehicles, reaching 1.9 million units in December. Despite a slight slowdown in monthly growth, 2024 marked a record year with 17.1 million EVs sold worldwide.
Morgan Stanley analyst Adam Jonas further fueled optimism with an updated note on Tesla. Jonas raised his 12-month price target from $400 to $430, while suggesting a potential bull case of $800 per share. “Tesla’s share price appreciation reflects its expanding influence across data collection, robotics, energy storage, AI, and manufacturing, leveraging synergies with Elon Musk’s other companies like SpaceX and xAI,” Jonas stated.
Tuesday’s rally comes as Tesla’s stock remains approximately 13% below its all-time high of $479.86, reached in mid-December. However, recent gains represent a reversal from broader tech sector declines caused by tempered expectations for Federal Reserve rate cuts.
Tesla’s continued innovation and Musk’s diverse ventures have reinforced the company’s appeal to investors seeking exposure to transformative technologies. With robust EV sales and speculation around Musk’s expanding influence, Tesla remains a focal point in the market.
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