TSLA Stock: Why The Price Surged Today

By Amit Chowdhry ● Oct 25, 2021
  • The stock price of Tesla Inc (NASDAQ: TSLA) increased by 12.66% today. This is why it happened.

The stock price of Tesla Inc (NASDAQ: TSLA) increased by 12.66% today. Investors are responding positively to a bullish research report and a major order from Hertz. Due to the stock price increase, Tesla’s market valuation surpassed $1 trillion.

Morgan Stanley Report

Morgan Stanley issued a bullish research report due to Tesla’s record third-quarter profit and deliveries. Morgan Stanley analyst Adam Jonas had increased the price target on Tesla from $900 to $1,200 per share. And Jonas also reiterated an “Overweight” rating on the company shares, citing higher vehicle sales volumes in the coming years. And Jonas also noted that Tesla is demonstrating manufacturing leadership in the EV sector.

“The Tesla you see today is the product of pre-COVID, sub $100 billion Tesla,” wrote Jonas in the research note via TheStreet. “The Tesla you’ll likely see over the next 12 to 18 months would demonstrate the capabilities of the trillion-dollar Tesla, emphasizing step-changes in manufacturing, cost reduction … expansion in capacity, model lineup and services offerings.”

For the three months ending in September, Tesla had posted a net income of over $2 billion. And the company reported its strong profit margins in its history of 30.5%. Plus sales hit a record $13.7 billion.

Hertz Order

Investors also responded positively to Hertz ordering 100,000 Tesla vehicles. These vehicles are expected to be delivered by the end of next year. Hertz placed the order to ramp up its electrified rental vehicle options.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.