Tesla Stock Eyes 5th Day Of Gains As Analyst Hikes Price Target To $400 On Musk Factor: Retail Gets Bullish

Shares of Tesla, Inc. rose more than 2% on Tuesday, hitting the $400 mark for the second time in two days and setting them on course for a fifth consecutive session of gains.

Morgan Stanley analyst Adam Jonas boosted his price target on Tesla to $400 from $310 while maintaining an ‘Overweight’ rating and reiterating the stock as the brokerage’s top pick. 

Jonas attributed the price increase to investor optimism about Tesla’s role in AI, renewable energy, robotics, and other technological areas, especially given CEO Elon Musk’s growing political influence.

“Elon Musk’s entry into the political sphere has expanded investor thinking around Tesla’s fundamental outlook – TSLA shares have since responded by rallying beyond our prior $310 price target,” Jonas said.

He also emphasized that Tesla’s total addressable market (TAM) could broaden significantly, particularly as the company explores areas like autonomous vehicle (AV) technology and renewable energy solutions. 

Jonas valued Tesla Mobility, its autonomous rideshare venture, at over $66 per share under his revised sum-of-the-parts (SOTP) model, although he doesn’t forecast mass deployment until after 2030.

“It is indeed difficult to quantify whether, and how, Tesla could be affected by Elon Musk’s relationship with the Trump administration. And there may be a number of risks (management time, distraction, potential conflicts of interest, etc),” he added.

On the regulatory front, Jonas highlighted that U.S. states and metro areas would likely retain the most significant influence over AV deployment, even as federal policies evolve.

Adding to the optimism, Cantor Fitzgerald analyst Andres Sheppard also raised his price target for Tesla to $365 from $255, citing increased bullishness surrounding Tesla’s Robotaxi and self-driving opportunities. 

While maintaining a ‘Neutral’ rating due to valuation concerns, Sheppard noted that recent updates to Tesla’s autonomous software and plans for expanded Robotaxi deployment could position the company to benefit from a federal self-driving vehicle framework if implemented.

Cantor’s note mentioned positive feedback on Tesla’s latest full self-driving updates, including features like reverse driving and auto-parking, signaling closer progress toward the Robotaxi program. 

The brokerage also increased its forecast for Robotaxi fleet sizes in 2027 and 2028 to 115,000 from 15,000 and to 300,000 from 10,000, respectively.

TSLA sentiment and message volume Dec 10 premarket as of 11:20 am ET | source: Stocktwits

On Stocktwits, retail sentiment for Tesla shifted to ‘bullish’ from ‘neutral’ a day ago as investors reacted to the price target hikes and recent progress. 

Tesla shares have gained over 60% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<