The share price of electric vehicle manufacturer Tesla (NASDAQ: TSLA) could receive a boost in its quest to hit $400, as early reports indicate the company is on course for an outstanding quarter in China.
Specifically, preliminary data from the China Passenger Car Association (CPCA) revealed that Tesla delivered 78,856 vehicles in November 2024, a 4.3% year-over-year decline.
Despite the slight drop, weekly insured registrations surged to 18,600 from November 25 to December 1, marking the second-highest weekly figure of the year.
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Tesla China’s Q4 insured registrations are up 14.2% year over year and 5.8% quarter over quarter after nine weeks, positioning the automaker for its best quarter.
The current figures from China are encouraging for Tesla, especially considering October’s disappointing estimates, where sales hit their lowest level since April.
These figures had raised concerns about Tesla’s fourth-quarter results, given China’s importance as a core market for the EV sector. Nonetheless, the company anticipates delivering approximately 515,000 vehicles in the final quarter of 2024.
What next for Tesla stock price
Regarding Tesla’s stock price, if the company posts positive results and current market conditions remain favorable, the stock will likely be well-positioned to target the $400 milestone.
The $400 mark has been a critical target for TSLA, fueled by bullish momentum initiated by post-election optimism. At press time, Tesla’s stock was valued at $357.09, ending the last trading session up 3.4%.
However, in pre-market trading on December 3, Tesla’s stock showed weakness, declining by over 1%.
The drop followed a setback for CEO Elon Musk’s pay package. A Delaware judge ruled that Musk is not entitled to his $56 billion compensation package despite Tesla shareholders voting to reinstate it in June. The judge deemed the package excessive, though Tesla is expected to appeal the decision.
Interestingly, the judge also ordered Tesla to pay $345 million in attorney fees, significantly less than the $6 billion initially sought but still one of the largest awards in securities litigation.
The payment can be made in cash or with Tesla stock. Ark Invest CEO Cathie Wood reacted to the ruling by calling it a ‘mockery.’
Wall Street remains bullish on TSLA stock price
Meanwhile, some Wall Street analysts remain optimistic about Tesla’s stock, citing the company’s advancements in artificial intelligence (AI) and autonomous driving. For instance, Dan Ives from Wedbush Securities believes the upcoming Donald Trump administration will prioritize these technologies.
According to a Finbold report, brokerage firm Stifel also raised Tesla’s price target to $411 from $287, maintaining a ‘Buy’ rating and citing a ‘clearer path’ toward achieving full self-driving (FSD) technology.
Additionally, Ives has predicted that Tesla’s stock could double within the next 18 months, potentially reaching $600, emphasizing the significance of AI in driving this growth.
However, not all analysts share this optimism. In this case, UBS’s Joseph Spak has argued that Tesla’s stock is driven by speculation regarding its future AI and FSD potential.
In summary, despite investors seemingly reacting negatively to Musk’s pay package setback, Tesla’s other fundamentals—such as impressive figures from China and advances in AI—place the company in an ideal position to target $400.
Featured image via Shutterstock
