TSLA Stock Rises 3% In Tuesday Pre Market: What's Going On?

As the market opens on Tuesday, Tesla (TSLA) stock has risen by 3% in the pre-market session. This increase comes on the heels of a sharp rally on Monday, where the stock gained 7.3% following reports of a price target hike from Wedbush analyst Daniel Ives. But what's driving this recent surge in Tesla's stock price?

Firstly, let's take a look at the broader context. Tesla's stock has been on a rollercoaster ride over the past year, with significant volatility and swings in price. As of January 14, 2025, Tesla's stock price is $403.31, which is a 62.74% increase from its price one year ago. However, this increase follows a significant decrease in the stock price in the previous four weeks, where Tesla lost 13.28% of its value. This volatility is not uncommon for Tesla, as the company has a history of experiencing large swings in its stock price.

Now, let's dive into the factors contributing to TSLA's recent performance:

1. Revised Price Target from Morgan Stanley: Morgan Stanley analyst Adam Jonas raised his price target for TSLA from $400 to $430, with a bullish scenario reaching $800. This positive analyst sentiment can boost investor confidence and lead to increased buying activity.
2. Advancements in Tesla’s Full Self-Driving (FSD) Technology: Gary Black, a Tesla enthusiast, shared that FSD v13.2 showed a 750% efficacy increase to 724 miles per disengagement on highways, compared to 89 miles in the previous version. This significant improvement in FSD technology can attract more investors and increase demand for TSLA stock.
3. Positive Reviews of Tesla’s Updated Model Y: Although not explicitly stated in the provided information, positive reviews of the updated Model Y can also contribute to TSLA's stock price increase, as it indicates strong consumer demand and market acceptance of the company's products.

These factors combined to drive TSLA's stock price up by 3% in Tuesday's pre-market session. As we look ahead, it's essential to keep an eye on Tesla's financial performance, analyst ratings, and market sentiment to gauge the stock's potential for continued growth or a pullback.