Futures slip, bank earnings ahead, Powell to speak - what’s moving markets
Investing.com - Tesla (NASDAQ:TSLA) received a new Buy rating from Melius Research on Monday, with analyst firm setting a $520 price target for the electric vehicle maker. The target sits well above the current stock price of $425.46, though InvestingPro analysis suggests the stock is trading above its Fair Value.
Melius initiated coverage on the automaker, calling Tesla shares "a must own" and highlighting the company’s unique position to capitalize on artificial intelligence disruption that will impact multiple industries, starting with automotive. With a substantial market capitalization of $1.42 trillion and strong financial health indicators, including a healthy current ratio of 2.04, Tesla maintains its position as a prominent player in the automotive sector.
The research firm emphasized Tesla’s advantages in computing power management and the combination of technology expertise with manufacturing capabilities that competitors cannot currently match.
Melius noted that Tesla’s connection to the "Musk ecosystem," including xAI, provides advantages in delivering new data centers at an unmatched pace, while the company’s manufacturing approach embraces rapid iteration and vertical integration.
The analyst firm specifically pointed to Tesla’s ability to "rapidly improve and scale autonomy in driving," describing this as "the first major manifestation of AI in the physical world" with significant changes to follow.
In other recent news, Tesla has begun ramping up production at its Shanghai gigafactory for the fourth quarter, as confirmed by Tesla vice president Tao Lin. This move aligns with the company’s recent increase in China-made electric vehicle sales, which rose 2.8% in September compared to the previous year, according to the China Passenger Car Association. The rise in sales marked the end of a two-month decline and coincided with the launch of Tesla’s new six-seater model in China. Additionally, shipments from Tesla’s China operations reached 90,812 units in September, reflecting a 9.2% increase from August levels.
In a separate development, Tesla has registered plans for a new, longer-range variant of its Model Y, named "Model Y+," in China. This registration was noted on China’s industry ministry website. Meanwhile, TD Cowen has raised its price target for Tesla to $509 from $374, maintaining a Buy rating. The research firm cited Tesla’s strong third-quarter delivery performance and advancements in autonomous vehicle technology as reasons for the increased price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.