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Tesla stock reels in $900 following Elon Musk’s big space achievement, analyst upgrades

Tesla's Made-In-China Model 3 gets its first customer deliveries. (Source: Tesla China | Twitter)

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Tesla (NASDAQ: TSLA) moves closer to the $900 mark after a big weekend for CEO Elon Musk. Musk qualified for the first tranche of his multibillion-dollar performance bonus, and SpaceX successfully launched two astronauts into space this past weekend. The electric automaker also received several upgrades from analysts based on Tesla’s future outlook in international markets.

Jairam Nathan of Daiwa Securities launched coverage of the automaker with a Buy rating and a $910 price target. He believes the electric automaker is a few short steps away from global dominance.

In a note to investors, Nathan wrote that Tesla is close to succeeding in international markets like China and Europe. Nathan believes that the company can have similar success in Europe and China, especially considering the Gigafactory production facilities that are being built in the two locations.

Simply put, Tesla is “on the cusp of replicating its success in the U.S. EV market to potentially larger markets in China and Europe,” the Daiwa analyst wrote, according to Barron’s.

Wedbush analyst Dan Ives also increased his price target from $600 to $800. Ives stated, “we continue to believe EV demand in China is starting to accelerate with Tesla competing with a number of domestic and international competitors for this market share.”

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At the time of writing, Tesla stock traded at $873.95, up 4.66%, or $38.95.

The surge in price could be attributed to projections that the electric vehicle sector will skyrocket in 2021 based on a new report by Cairn Energy Research Advisors, CNBC reported. Sam Jaffe of Cairn stated, “There’s pent-up demand for electric vehicles. We will see a combination of factors make 2021 an inflection point for the sale of electric vehicles.”

Musk’s success over the weekend with the newly-earned bonus and successful SpaceX launch may have attributed to the stock price increase as well. SpaceX became the first privatized company to successfully launch NASA astronauts into orbit.

Currently, Tesla’s two international production facilities are located in Shanghai, China, and Brandenburg, Germany. Shanghai is now producing around 4,000 Model 3 vehicles a week, while Berlin is still under construction and is set to begin manufacturing in July 2021.

Giga Shanghai has been producing variants of the Model 3 since December 2019, but Tesla did not begin delivering built cars to public customers until January 2020. The first cars built in the facility were initially given to employees and not Chinese citizens.

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Since the first Model 3s were delivered to China’s first buyers of what has come to be known as the “Made in China” versions of the sedan, Tesla has continued to ramp its production rates and introduce new configurations of the vehicle. Currently, construction crews are also working on the second phase of the Chinese vehicle manufacturing plant, where Tesla’s latest car, the Model Y crossover, will be built.

The steady demand for Tesla’s electric cars has allowed the company to be recognized as one of China’s most popular EV brands. In April 2020, the Model 3 was the second most popular electric car in China, trailing the Qin Pro EV from Xi’an-based BYD Automotive. This information is according to the EV Sales Blog, a website that tracks the sale of electric cars around the world.

In Germany, Tesla is continuing to push toward the groundbreaking of its Gigafactory in Brandenburg, a state encircled by Berlin. Giga Berlin will supply the European markets with Tesla’s electric vehicles. The construction of this Gigafactory has encountered barriers from COVID-19 and residents’ concerns, but Tesla has managed to remain on schedule thanks to support from German politicians.

The Giga Berlin facility will employ 12,000 people, providing a positive impact on Germany’s economy.

Nathan’s outlook of dominance in Europe and China is backed by Tesla’s willingness to become a foreign automaker and establish a presence in countries other than the United States. With substantial support from the massive Chinese automotive market and European countries, there is plenty of speculation that Tesla will thrive even more when the company establishes production facilities in foreign lands.

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Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch

Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

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(Credit: Tesla)

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.

Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.

The TSLA Purchase

As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.

Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.

Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

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Just a Few Weeks Before Robotaxi

The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.

During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated. 

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Tesla hints at ‘Model 2’ & next-gen EV designs

Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

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(Credit: Tesla)

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.

Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.

“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.

“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”

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In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”

Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.

It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.

The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.

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Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results

Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

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(Credit: Tesla)

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.

Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.

“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.

“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.

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Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.

Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.

As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.

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