Tesla shares surged to a three-year high amid reports an investment bank had raised its price target for the electric vehicle (EV) manufacturer.
Tesla (NASDAQ: TSLA) shares closed at $11.20 or 2.87% higher at $400.99 ($626.55) after briefly touching $409.73, the highest level since 2021.
This continues a climb of more than 50% since the election as United States President of Donald Trump, who has appointed Tesla founder Elon Musk to his Cabinet in a bid to reduce government red tape.
Morgan Stanley lifted its price target for Tesla from $310 to $400 per share and retained the stock as its "Top Pick", according to media reports.
The investment bank referred to investor enthusiasm about Tesla's role in artificial intelligence, renewable energy, onshoring trends and particularly its potential to expand beyond the automotive industry, they said.
“Elon Musk’s entry into the political sphere has expanded investor thinking around Tesla’s fundamental outlook,” one report quoted Morgan Stanley lead analyst Adam Jonas as writing.
At its closing price the EV maker is capitalised at $1.26 trillion, ranking it among the 10 largest companies in the world and valuing Musk’s shareholding at $165 billion.