Tesla Inc. (NASDAQ: TSLA) shares surged by 2% in early Monday trading, reaching near the $400 mark, following the company’s announcement of a new affordable vehicle model during a meeting with Deutsche Bank, according to Benzinga Pro.
The electric vehicle giant revealed plans for the Model Q, a car priced under $30,000, aimed specifically at the Chinese market. The Model Q is set to compete with vehicles like the BYD Dolphin and the Volkswagen ID.3, marking a significant step for Tesla as it seeks to expand its presence in the competitive Chinese automotive sector.
Tesla shares reached $401.16 during overnight trading on Robinhood, coming close to their all-time high of $407.36 from November 2021. The stock had closed the previous Friday at $389.22, marking a 5.34% gain. This recent uptick is largely attributed to positive reports from analysts, especially Bank of America Securities. The firm raised its price target for Tesla from $350 to $400 while maintaining a “buy” rating.
John Murphy, senior automotive analyst at Bank of America, highlighted factors influencing this move, including Tesla’s visit to its Gigafactory in Texas and the release of its latest full self-driving software. The announcement of the Model Q is part of Elon Musk’s broader strategy to increase Tesla’s market share in China, competing with local players like BYD and international operators such as Volkswagen. This move aligns with Tesla’s ongoing efforts to innovate and capture new market segments, as evidenced by the recent unveiling of the Cybercab—an autonomous vehicle designed without traditional controls. Additionally, Qraft Technologies, a South Korean fintech company, has increased its investment in Tesla, signaling confidence in Musk’s leadership and the company’s growth potential. This decision comes after a notable 40% increase in Tesla’s stock value in November, despite challenges surrounding the company’s October Robotaxi event.
