Tesla stock price rose to another all-time high price on Tuesday, gaining 2.6% in the pre-market session to trade at $475. The stock has been on a scintilatting run since Donald Trump won the November 5 US Presidential elections, and more investors are betting on its AI-driven growth strategy.
The stock has risen by about 90% since Trump’s win, and a series of market-friendly developments since that time have added fuel to the upside propulsion. Tuesday’s gains come amid a series of upward price target revisions by Wall Street analysts on Tesla stock price. Key among these were Bank of America, Goldman Sachs and Mizuho analysts.
FSD drives growth, but is Tesla stock price overrelying on it?
Reuters reported on Friday that Trump’s team was already working on a Federal regulatory framework that could create a more accommodative business environment for Full Self Driving (FSD) vehicles. According to Reuters, key among these is a proposal to scrap an order by National Highway Traffic Safety Administration (NHTSA) for automakers to report FSD car crashes.
Tesla (NASDAQ: TSLA) has been opposed to the crash disclosure requirements, arguing that it paints the company in a bad picture compared to its competitors without considering that Tesla does more “thorough” data collection and analysis. The company is focusing its growth strategy on FSD, creating what some analysts consider one of the largest growth fronts for AI.
However, Tesla’s much-hyped cyber car won’t hit the market until 2026. That could trigger a pullback in the stock price as investors will likely focus more on sales figures in the intervening period. Furthermore, rivals like Alphabet’s Waymo and Amazon’s Zoox, which have already hit the markets have a headstart that could give them an advantage.
Tesla stock price prediction
Tesla stock price pivots at $463 and the upside will prevail if action stays above that level. The bullish momentum will likely face the first hurdle at $480. However, an extended control by the buyers could take the price above that level and test $490.
Alternatively, moving below $463 will give sellers the upper hand. In that case, the momentum will shift to the downside, with the first support coming at $451. Also, the upside narrative will be invalid if the price breaks below that level. In addition, a stronger downward momentum could extend the decline and test $440.
