Tesla Mania Grips Wall Street as Musk's Mind Control Powers Surge to New Heights...

It’s official—Tesla stock is doing what Tesla does best: defying gravity and all reasonable expectations. Early Monday, the EV titan’s shares shot up 2.4% to $398.48, flirting with the $400 mark—territory it hasn’t touched since early 2022. At one point, the stock even hit $404.80, just a stone’s throw away from its all-time high of $414.50 in November 2021. Looks like Elon Musk’s favorite pastime—melting faces in the stock market—is back on the menu, baby.

(Source: Giphy) 

Tesla capped last week with a 5.3% rally on Friday, pushing its weekly gain to a staggering 12.8%. That’s a 55% run since the election, as investors bet big on self-driving cars and hope the new administration will roll out the red carpet for autonomous vehicles. But here’s the thing—Tesla is currently trading 70% above its 200-day moving average. Translation: Bears are licking their chops for a friggin’ pullback. 

Still, analysts aren’t ready to call it overcooked just yet. Bank of America’s John Murphy toured Tesla’s Texas gigafactory last week and came back with stars in his eyes. He upped his price target from $350 to $400, pointing to Tesla’s robotaxi ambitions, the Optimus humanoid robot , and long-term EV growth. Meanwhile, Goldman Sachs is playing it cool with a $250 price target, citing mixed demand in the U.S. and Europe. So, basically, Wall Street is about as united on Tesla as it is on pineapple pizza (everybody hates it, and you know it). 

(Source: Fortune) 

What’s more is that Tesla’s November numbers out of China were a rare win in an otherwise shaky demand landscape. The company sold 78,856 China-made vehicles last month, marking its best domestic performance this year—a 12% jump from November 2022. But while China’s numbers are climbing, analysts like Troy Teslike are throwing cold water on the party. Teslike predicts U.S. and European sales will drop by 30,000 units in 2024, even as China adds 48,000. His take? “There’s no need for celebration when sales are down in the U.S. and Europe.” Ooof. 

Now with that said, Tesla knows its long-term bull case hinges on its self-driving ambitions, and Musk is hyping the robotaxi like it’s his golden ticket to a $5 trillion valuation. Bank of America analysts, fresh from their Texas test rides, noted that Tesla’s Full Self-Driving software has improved dramatically, with fewer driver interventions needed. Cool, but let’s not forget the lawsuits, regulatory scrutiny, and the fact that Alphabet’s Waymo is already cruising past 150,000 self-driving rides a week.

(Source: Ars Technica) 

Still, Musk is betting bigly. Tesla plans to launch its robotaxi service in 2025, and analysts like Dan Ives of Wedbush think it could revolutionize mobility. But for now, it’s all potential, no payoff—a story Tesla investors know all too well. 

But, but, but… with all that said, Tesla’s current rally still has traders buzzing left, right, and twice on Sunday. Market technicians are eyeing $429 as the next big resistance level, with some even calling for $480. Call options with a $710 strike price are flying off the shelves—because, apparently, betting on Tesla doubling isn’t crazy enough anymore. However, let’s not forget that Tesla’s valuation is already in the stratosphere, trading at 125 times forward earnings. 

(Source: Giphy) 

For context, competitors like BYD and Li Auto are chilling at 20 times. Meaning, while Musk’s vision for autonomous driving, humanoid robots, and world domination could justify the premium—that only happens IF he delivers. And let’s be real, Tesla’s track record with deadlines is… nearly non-existent. 

So in the end, whether you’re a believer or a skeptic, one thing’s clear: Tesla is the stock market’s ultimate Rorschach test. Bulls see a tech juggernaut poised to disrupt industries; bears see a car company with delusions of grandeur. But for now, Tesla’s rocket ride shows no signs of slowing, and $400 seems like just the beginning. Only time will tell of course, and obviously filter-this through a brain cell—but place your bets accordingly, friends. As always, stay safe and stay frosty! Until next time…

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Stocks.News holds positions in Tesla and Alphabet (Google) as mentioned in the article.