Tesla stock smashes past $250 as new lifeline emerges

Core Insights - Tesla is experiencing a stock rally driven by developments in the Chinese market, with shares rising 4% to $259, breaking the $250 resistance after previous attempts [1][2] - Despite the rally, Tesla faces challenges such as declining sales and political backlash against CEO Elon Musk, resulting in a year-to-date stock decline of nearly 35% [2] Developments in China - Tesla announced plans to release its Full Self-Driving (FSD) technology in China, pending regulatory approvals, which could enhance its competitive position against local manufacturers [3][4] - The company aims to fully launch the FSD technology this year, collaborating with Baidu, which may help boost sales in China as domestic EV makers struggle with consumer trust [4][5] Retail Investor Activity - Retail investors have significantly contributed to the stock's recent performance, injecting a record $8 billion into Tesla over 13 days, marking the largest buying streak in the company's history [6] Analyst Sentiment - Wall Street analysts are divided on Tesla's future, with some cutting price targets significantly, while others maintain a bullish outlook, citing potential growth opportunities [8][10] - RBC Capital's Tom Narayan reduced the price target from $440 to $320 but maintained an 'Outperform' rating, while JPMorgan's Ryan Brinkman lowered his target from $135 to $120 due to concerns over demand and backlash against Musk [9][10] - Morgan Stanley remains optimistic, reaffirming Tesla as a top auto pick with a price target of $430, highlighting the company's potential in AI and robotics [10]