Electric Dreams: Tesla Stock Soars on Global EV Sales and TikTok Rumors
The electric vehicle (EV) revolution is gaining momentum, and Tesla is at the forefront. On Tuesday, Tesla’s stock surged over 3% following promising global EV sales data and whispers of a potential deal between Elon Musk and Chinese authorities to acquire TikTok’s US operations.
A Record Year for EV Sales
According to research firm Rho Motion, global sales of fully electric vehicles and plug-in hybrids reached 1.9 million in December, a 25.6% year-over-year increase. Although sales slowed for the second consecutive month, 2024 proved to be a record year with 17.1 million units sold.
Musk’s Expanding Empire
Elon Musk’s influence extends far beyond Tesla, with his reach spanning electric vehicles, satellites, and social media. Morgan Stanley’s Adam Jonas recently released a bullish note on Tesla, citing the company’s natural advantages in data collection, robotics, energy storage, AI/compute, manufacturing, and supporting infrastructure.
A Bullish Outlook
Jonas raised his 12-month price target on Tesla from $400 to $430, citing the company’s expanding “surface area” between Tesla and physical AI. With Tesla shares up roughly 65% since the presidential elections in early November, investors are taking notice of Musk’s growing empire.
Reversing Recent Trends
This week’s stock movement marks a reversal from recent trends, as investors rotated out of tech stocks in reaction to pared-down expectations of Fed rate cuts this year. Tesla shares, which have been a proxy for the “Trump trade,” are still off roughly 13% from their all-time high close of $479.86 on December 17.
The Future of Electric Vehicles
As the world shifts towards sustainable energy, Tesla is poised to remain at the forefront of the EV revolution. With Musk’s vision and leadership, the company is well-positioned to continue its upward trajectory.
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