Tesla shares climbed nearly 4% on Monday following an analyst price target increase and reports of expanded production at its Shanghai facility. The move comes amid rebounding sales in China. Investors appear buoyed by the company's manufacturing momentum.
Tesla Inc (NASDAQ:TSLA) shares rose 3.87% to $429.51 on Monday, driven by positive analyst updates and operational developments in China. Evercore ISI analyst Chris McNally maintained an In-Line rating while raising the price target from $235 to $300. The stock has a consensus Buy rating from analysts, with an average price target of $349.50. Recent changes include Stifel lifting its target to $483 and UBS increasing to $247.
Separately, Reuters reported that Tesla vice president Tao Lin announced on Weibo the start of a production ramp-up at the Shanghai Gigafactory in the fourth quarter. This facility is Tesla's largest manufacturing hub globally. The decision aligns with improving sales, as China-made EV sales rose 2.8% in September compared to the previous year, ending a two-month decline. This recovery was supported by the launch of a new six-seater model in the Chinese market.
Technical indicators suggest bullish sentiment, with shares forming higher highs and lows. Trading volume reached approximately 46 million shares, and the RSI stood at 66.25, nearing overbought levels. The MACD indicated a bullish crossover, though converging lines hint at possible momentum slowdown. Benzinga Edge rankings showed moderate fundamentals: Value at 4.39/100, Growth at 75.63/100, Quality at 64.52/100, and Momentum at 89.78/100.
The combination of analyst optimism and production news has boosted investor confidence at the start of the week.