Though the third-quarter (Q3) report did not exceed – or even meet – expectations with all the critical metrics, it nonetheless proved positive enough to break Tesla’s (NASDAQ: TSLA) long losing streak in 2024.
Indeed, having completely reversed the performance evident since early October and experienced a 23.74% surge in the last 30 days, TSLA shares are the most valuable since September 2023.
Specifically, Tesla stock briefly approached $275 just over 13 months ago, while its price today, at press time on October 28, stands at $269.83. Such performance means that, after staying in the red in the year-to-date (YTD) chart for most of 2024, TSLA shares are now up 9.07% since January 2 and 36.77% in the green in the last 12 months.
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Is $300 the next Tesla stock price target?
The strong uptrend has reignited the hopes that Tesla shares may now be aiming for $300 – a high that has been forecast by many of the notable Wall Street bulls, such as Wedbush’s Dan Ives, on multiple occasions throughout the year.
The immediate bullish outlook is reinforced by the fact that TSLA stock blitzed above numerous resistance levels as it surged beyond $225 last week and now faces primarily the barriers derived from its past highs.
Still, the Monday, October 28 session might prove pivotal, as momentum has not persisted in the extended session. By press time, Tesla stock was only 0.49% in the green in the pre-market.
Longer-term analyses, however, indicate that even if there is a correction after the opening bell, TSLA shares are likely to continue moving higher soon.
Tesla stock’s recent performance mimics the patterns seen ahead of the early 2023 rally, meaning that a similar phenomenon might repeat in the coming weeks, hinting at a potential rally all the way to $380.
Simultaneously, trading analyst Peter DiCarlo pointed toward TSLA’s continuous formation of higher lows on October 23 as a sign of the stock’s underlying strength and a potential springboard for a rally toward $400.
The very same pattern was also noted by the stock analysis platform TrendSpider in its TSLA assessment published just ahead of the earnings.
The analysis is even more pointed at press time as it predates the recent rally, meaning that, if DiCarlo was right in his assessment, Tesla stock’s path toward $400 might already be open.
Why a Tesla stock rally to $300 is not guaranteed
It remains important not to be blinded by the most recent positive developments, as several risks remain associated with investing in TSLA shares.
Though the Q3 earnings report was welcomed as an early Christmas gift from the electric vehicle (EV) maker, it also brought a revenue miss and came after a relatively disastrous ‘We, Robot’ event and a weaker-than-expected delivery report.
In the long run, the ‘Robotaxi’ mishaps might prove particularly impactful. The happening was meant to solidify a view of Tesla as a big tech and artificial intelligence (AI) name, but it instead cast additional doubt that TSLA might, after all, be a more regular car company.
Fortunately for investors, they might know if ‘We, Robot’ was a mere mishap or a harbinger of things to come already next year. Indeed, 2025 was floated as the year the first ‘Robotaxis’ will hit the streets and the first ‘Optimus’ robots will become commercially available.
Additionally, given Elon Musk’s endorsement of Donald Trump, the coming election might cause substantial volatility for TSLA. However, a Kamala Harris victory might prove better for Tesla in the long run due to the Democrat’s willingness to push for a greener economy.
Conversely, a Trump victory – despite Musk favoring the Republican candidate – could cause some headwinds for the EV maker due to the promised budget cuts and Tesla’s reliance on government stimuli, as pointed out by multiple analysts and institutions, including JPMorgan (NYSE: JPM).