Tesla shares reach record highs: Analysts remain optimistic

Tesla's shares experienced a remarkable increase of nearly 6% and closed at a record value of USD 424.77 on Wednesday. This continued the series of six days of continuous price gains for the electric vehicle manufacturer. This price surge was accompanied by an adjusted price forecast from Goldman Sachs analysts, who raised their target from USD 250 to USD 345. Despite the lower target compared to the current record price, the analysts emphasized potential fundamental challenges in the core automotive business. However, they also see long-term opportunities for Tesla through self-driving cars and robots as beneficiaries of the artificial intelligence boom. This positive reassessment by Goldman Sachs followed an increase in the price target by Morgan Stanley analyst Adam Jonas, who raised his forecast from USD 310 to USD 400 and confirmed Tesla as his "Top Pick." Since the reelection of Donald Trump, Tesla's shares have increased by over 70% this year. Observers hope that CEO Elon Musk's close ties to the newly elected president could benefit the company. Musk, who had appeared at Trump events even before the election, was recently proposed as co-leader of the newly suggested Department of Government Efficiency (DOGE). Some analysts believe that Tesla could benefit from the possible elimination of the USD 7,500 tax credit program for electric vehicles from the Biden era, as Tesla has a longer history of profitable EV production compared to its competitors. However, Trump's protectionist tariff policies could impact Tesla's sales in China.