Gene Munster, managing partner at Deepwater Asset Management, has declared Tesla Inc. as the most innovative company currently, positioning it ahead of well-established tech giants such as Apple Inc., Alphabet Inc., and Nvidia Corporation. This assertion reflects Munster’s analysis of Tesla's significant stock performance, which increased by 84% over the past 65 trading days, following the company’s recent ‘We, Robot’ event held in October.
On Tuesday, Munster shared his insights on the social media platform X, previously known as Twitter, attributing Tesla’s extraordinary stock rise to a renewed confidence in its autonomy capabilities and future robotics. As he noted, while Tesla's stock surged, the average increase for the other members of the so-called "Magnificent Seven" tech companies was only around 10%, with the Nasdaq itself recording an 8% increase during the same period.
As of now, Tesla's market capitalisation is reported at approximately $1.3 trillion. Munster drew comparisons with companies boasting market caps exceeding $2 trillion, including Apple, Amazon.com, Google, Microsoft, and Nvidia. He stated, “In other words, I believe Tesla's market cap has plenty of room to grow,” underscoring the investment potential perceived in the company.
The ‘We, Robot’ event showcased Tesla’s strides in autonomous driving technology, featuring 19 Cybercabs and 29 Model Ys navigating without any safety-related incidents, as confirmed by Tesla executive Ashok Elluswamy. The gathering highlighted Tesla's commitment to advancing capabilities in AI-driven transportation.
Further affirming Tesla's position in the market, Cathie Wood, CEO of ARK Investment Management, has previously referred to the company as “the largest AI project on Earth,” indicating its expansive potential across various industries.
Adding to the optimism surrounding Tesla, Gary Black, managing partner at The Future Fund, has recently heightened his price target for the stock by 27%, bringing it to $380. He points to the anticipated launch of a new compact hatchback model priced between $25,000 and $30,000, which could capture around 15% of the global compact car market, potentially propelling Tesla’s growth further.
In the Asian market, Tesla is also witnessing robust sales, as evidenced by insurance registrations in China that totalled 21,900 units for the week ending December 8, marking the company’s second-best performance in 2024.
In terms of stock performance, Tesla shares closed the trading session on Tuesday with a rise of 2.187%, concluding at $400.99. After-hours trading continued to see an upward trend, observing an increment of 0.55%. Throughout the year, Tesla’s stock has appreciated by 61.42%, according to data from Benzinga Pro.
Currently, analysts maintain a consensus “hold” rating for Tesla shares, with Stifel establishing the highest price target at $411, as of December 2. Price targets from other firms, including Cantor Fitzgerald, Morgan Stanley, and Deutsche Bank, average around $378.33, suggesting a potential downside of approximately 6.17% based on current valuations.
This dynamic evolution within Tesla's business practices, particularly in AI automation and driving technology, underscores the increasing interest and investment potential that the company commands in today's market landscape.
Source: Noah Wire Services