Tesla shares have broken their record highs and excited investors as the electric vehicle giant’s stock value soared to an all-time high of $424.88, surpassing the previous record of $414.50 in November 2021.
The rise was supported by growing confidence among investors in self-driving technology.
With the Trump administration loosening policies and regulations, investors have placed high hopes on Tesla’s autonomous driving prospects.
Analysts also followed suit, with Morgan Stanley’s Adam Jonas raising his price target to $400.
However, Jonas warned that self-driving policies may be reevaluated at the national level.
Tesla also faces significant obstacles in terms of technology, testing and approvals from relevant parties.
Despite the obstacles, the stock has surged more than 69% since Trump won the presidential election.
As Tesla shares continue to surge, investors are advised to be cautious as with the stock above 70% of its 200-day moving average, it may be ‘overextended’.
This means the stock price may be rising too quickly, making it vulnerable to a possible correction or price pullback.
