Shares of Tesla Inc. (TSLA) experienced a slight pullback of 0.6% during pre-market trading on Tuesday. This comes after the electric vehicle maker received an analyst upgrade, causing its market capitalization to soar by an impressive $79.6 billion. In today’s pre-market session, Tesla’s stock has fluctuated between a 1.2% decrease and a more modest 0.4% decrease.
On Monday, Tesla’s stock enjoyed a substantial surge of $25.08, equivalent to a 10.1% increase. This represents the largest one-day percentage gain the company has seen in the past eight months, propelling it firmly into bull-market territory by breaking through recent technical resistance.
The rally in Tesla’s stock can largely be attributed to the recommendations of Morgan Stanley’s Adam Jonas, widely regarded as one of the most influential Tesla analysts on Wall Street. Jonas not only advised investors to purchase Tesla stock but also raised his price target to an ambitious $400, the highest among all analysts. Moreover, investor optimism was further fueled by news of a potential labor strike within Tesla’s auto-making competitors.
Over the past three months leading up to Monday, Tesla’s stock has already gained an impressive 9.5%. Comparatively, the broader market as represented by the S&P 500 has experienced a more modest 3.4% increase during the same period.