Why Tesla Stock Is Surging Today

Market Performance - Tesla's stock price increased by 6.9% during Friday's trading, outperforming the S&P 500 index (up 1.2%) and the Nasdaq Composite index (up 1.7%) [1] - The stock's strong performance was driven by positive industry reports and analyst coverage, including a price target increase from Canaccord [2] China Sales Data - Tesla's vehicle sales in China increased by 8.8% year-over-year in 2024, reaching over 657,000 units [3] - Sales accelerated further in the last month, with a 12.8% growth rate and 83,000 units sold [3] - The strong performance in China is a significant positive development, especially considering Tesla's overall delivery decline in 2024 [4] Q4 2024 Production and Deliveries - Tesla produced 459,000 vehicles and delivered 495,000 vehicles in Q4 2024 [4] - Total deliveries for 2024 reached 1.79 million vehicles, below the Wall Street forecast of 1.806 million and the 2023 figure of approximately 1.8 million [4] - This marks the first time Tesla has experienced an overall decline in unit sales [4] Analyst Coverage and Price Target - Canaccord maintained a buy rating on Tesla and raised its one-year price target from $298 to $404 per share [5] - Despite the price target increase, the new target implies a slight downside of approximately 0.4% following the stock's recent gains [5] - Canaccord believes Tesla's valuation multiples are justified and comparable to other megacap tech companies like Nvidia, Apple, and Amazon [6] - The firm sees Tesla as well-positioned to capitalize on long-term growth opportunities in self-driving vehicles, batteries, and robotics [6]