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Tesla stock hits 52-week high at $271.21 amid market rally

Published 10/28/2024, 10:21 AM
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Tesla (NASDAQ:TSLA) Inc. shares soared to a 52-week high of $271.21, underscoring a robust period for the electric vehicle giant as it continues to ride the wave of a broader market rally. The milestone reflects a significant turnaround from previous challenges, with the stock now boasting an impressive 29.86% increase over the past year. Investors have shown renewed confidence in Tesla's growth prospects, innovation pipeline, and market expansion, propelling the stock to new heights and rewarding long-term shareholders with substantial gains.

In other recent news, Tesla continues to navigate a complex landscape of investor skepticism, analyst ratings, and legal proceedings. Wolfe Research maintained its Peerperform rating on Tesla, despite investor skepticism about the company's forecast of a 20%-30% increase in deliveries by 2025. The firm also raised its 2024 and 2025 earnings per share (EPS) estimates to $2.37 and $3.26.

Tesla reported strong third-quarter earnings, surpassing estimates with earnings per share of $0.72. Canaccord Genuity and Deutsche Bank both maintained a Buy rating on Tesla, reflecting confidence in Tesla's future earnings potential. However, Bernstein SocGen Group maintained its Underperform rating, questioning the sustainability of Tesla's margins and future growth prospects.

The 5th U.S. Circuit Court of Appeals recently overturned an order requiring Tesla CEO Elon Musk to delete a 2018 tweet, ruling it infringed upon his First Amendment rights. The court also directed the National Labor Relations Board to reevaluate its directive that Tesla must rehire a pro-union employee who had been terminated. These are some of the recent developments involving Tesla.

InvestingPro Insights

Tesla's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $865.08 billion, reflecting its dominant position in the electric vehicle market. Tesla's strong financial health is evident from an InvestingPro Tip indicating that it holds more cash than debt on its balance sheet, providing financial flexibility for future growth initiatives.

The stock's recent surge is supported by another InvestingPro Tip highlighting a significant return over the last week, with data showing a 23% price increase in just seven days. This short-term momentum contributes to Tesla's longer-term performance, with the stock trading near its 52-week high and showing a 59.96% price return over the past six months.

While Tesla's growth story remains compelling, investors should note that the company is trading at a high P/E ratio of 67.52, suggesting premium valuation. This aligns with an InvestingPro Tip cautioning that Tesla is trading at a high earnings multiple relative to near-term earnings growth.

For a more comprehensive analysis, InvestingPro offers 22 additional tips on Tesla, providing investors with a deeper understanding of the company's financial position and market outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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