Tesla Stock Jumps Despite Mixed Analyst Views, SEC's Lawsuit Against Musk: Retail Stays Optimistic

Barclays noted that a "broader theme of narrative command" has been keeping Tesla's stock in "hyperdrive" since the recent U.S. presidential election.

Tesla's stock rose 5% Wednesday morning, continuing its strong performance despite concerns from analysts and new regulatory challenges for CEO Elon Musk.

Wells Fargo reiterated an 'Underweight' rating, with a $125 price target for Tesla heading into 2025. 

The brokerage highlighted risks such as the potential repeal of the Inflation Reduction Act under the next U.S. administration, which could negatively affect demand and margins. 

Wells Fargo also expressed caution regarding Tesla's CyberCab and Optimus value, predicting a continued decline in Model 3 and Model Y sales.

Barclays raised its price target for Tesla to $325 from $270, maintaining an 'Equal Weight' rating, according to The Fly. 

The brokerage pointed to key areas like volume growth, expansion in autonomous vehicles, and contributions from regulatory credits and energy as vital for Tesla in 2025. 

However, Barclays noted that a "broader theme of narrative command" has been keeping Tesla's stock in "hyperdrive" since the recent U.S. presidential election.

The shares have "become untethered from fundamentals, arguably similar to what we saw with Tesla stock in late 2021 when the market was awash in EV euphoria," the analyst said.

Adding to concerns, the SEC on Tuesday filed a lawsuit against Musk over his 2022 purchase of Twitter (now X), claiming he failed to file a timely ownership report after acquiring more than 5% of Twitter's shares, violating securities laws. 

However, sentiment on Stocktwits remained 'bullish' on Wednesday morning as many retail investors shrugged off the negative news. 

One user pointed to an incoming "golden cross" technical signal, where the 50-day and 200-day moving averages converge. Others are eyeing $420 as the next potential target for the stock.

Tesla also made headlines surrounding its refreshed Model Y. Bloomberg reported that the company plans to suspend production lines in Shanghai for three weeks during Chinese New Year to optimize equipment, and deliveries are expected to begin in March. 

Meanwhile, Electrek reported that Gigafactory Berlin has started producing the updated Model Y, although orders have not yet been opened.

Tesla’s stock has gained 4.8% so far this year.

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