Tesla’s surge in stock prices has pushed its shares up to a 52-week record, boosting Elon Musk’s net worth.
This remarkable rise added more than $14 billion dollars to the already considerable fortune of the billionaire, securing his position as the richest person in the world.
The surge in Tesla shares comes amid a wave optimism about the future of Tesla, fueled by analyst’s positive predictions and the possibility for regulatory relief from a Trump-like administration.
A bullish market for Tesla
Tesla’s shares rose by more than 3.6% at midday on Thursday and exceeded $370.
The price of oil reached a peak at $375.43, its highest level since January 5, 2020.
Musk’s Tesla shares have increased from $261,2 billion to 265,5 billion in the last week.
The gap between him and Amazon’s Jeff Bezos – the second richest person in the world – has now increased to more than $110 billion.
The rally is fueled by analyst optimism
Positive analyst sentiment is responsible for the recent rally. This includes a nearly 3.5% increase on Monday.
Stifel Investments, a Wall Street investment firm, has significantly increased its Tesla price target to $411 – exceeding all other Wall Street analysts’ predictions as tracked by FactSet.
This optimistic outlook is a reflection of a growing belief in Tesla’s prospects for the future.
BofA Securities analysts released a positive report after visiting Tesla’s Giga Austin plant.
In a letter to investors, lead analyst John Murphy stated: “The trip increased our confidence that TSLA will be well-positioned for growth in 2025+, with its core EV businesses and the launch of its Robotaxi offering. And longer-term, from its investments into Optimus.”
Murphy increased the price of his target from $350 to $400.
The positive review immediately affected Tesla’s share price. It caused a midday increase of 3%.
Tesla’s future is ambitious
BofA’s optimism stems from several important factors.
First, Tesla’s TAM is likely to grow significantly with the release of an affordable electric car in 2025.
Murphy estimates that this vehicle would cost under $30,000; he achieved cost savings through “decontenting, improving the motor’s efficiency and thus enabling the battery to be smaller, and changing interior”.
In 2025, he also expects to see additional models.
Second, BofA has a very positive opinion of Tesla’s Full Self-Driving Software (FSD).
Murphy’s Team experienced it first-hand. They reported, “The Cybertruck… and Model Y that we rode in… were able to drive seamlessly to a charge station many miles away despite unusual road conditions. We traveled on roads under construction, and took a hard left turn, against traffic.”
The successful testing suggests that Tesla could launch its robotaxi service in the near future.
Optimus the humanoid robotic robot from Tesla is also a factor that contributes to this bullish mood.
Murphy said that Optimus was already used by Tesla at its Gigafactory for sorting battery cells, without the need of human interaction. It is also undergoing tests to determine dexterity such as catching a tennis ball.
Tesla aims at deploying 1,000 Optimus Robots by 2025. Murphy expects accelerated training of robots as Tesla’s robotic technology matures.
Musk’s TAM for Optimus is $200 trillion. Murphy sees it as a potential long-term opportunity, with increased production and cost reductions expected starting in 2026.
He says that a capital raising through an equity offer could facilitate the expansion of computing capacity needed for Optimus’ development.
Doge, Bitcoin and politics: Beyond the vehicle
Tesla’s connection with Bitcoin, and its market for cryptocurrencies is another factor that fuels the positive trend.
It is believed that the recent rise in Bitcoin price – which has now surpassed $100,000 for the very first time – can be attributed partly to Paul Atkins, the crypto-friendly SEC chairman.
Musk’s participation in the political sphere, which includes a meeting planned with Republican colleagues on Capitol Hill for the Department of Government Efficiency Committee (DOGE), adds to the positive perception surrounding Tesla and its chief executive.
Tesla’s stock price has risen by almost 53% in the last few months since Donald Trump won his election.
The post Elon Musk now has $14 billion in Tesla stock may change as new information unfolds.
This site is for entertainment only. Click here to read more
