Tesla's Stock Surges to $420 as Elon Musk Celebrates

Tesla Inc. (TSLA) stock reached the significant milestone of $420 on Wednesday, generating excitement across social media platforms and catching the eye of Elon Musk. This surge highlights a remarkable year for the electric vehicle leader, showcasing its impressive stock performance.

What Happened: Shortly after reaching this notable price point, Musk shared his thoughts on X (formerly Twitter), stating, “As foretold in the prophecy,” and included a screenshot showing the stock’s price. His post reflected a sense of humor and a nod to past discussions surrounding the $420 level.

Other influential voices joined the conversation as well. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, simply tweeted “420” in support of the moment. Meanwhile, Gary Black, managing partner at Future Fund LLC, shared a stock price graph and remarked, “I see what you did there. $tsla,” highlighting the significance of this price point for Tesla.

This event also marks the first return to the $420 threshold since Tesla’s stock split that occurred in August 2022. The $420 figure has a historical context, as Musk had previously claimed in 2018 that he was considering taking Tesla private at this price, a statement that led to significant headlines and a record stock price of $422.01 a year later. This generated controversy, but in 2023, a jury ruled that Musk was not liable for misleading investors with his earlier comments.

Why It Matters: So far in 2023, Tesla’s stock has surged by approximately 70.99%. Musk, who is also known for his role as the founder of SpaceX and owner of X, has recently been appointed co-leader of the Department of Government Efficiency by President-elect Donald Trump. This initiative aims to achieve significant federal spending reductions.

Research analysts from Morgan Stanley have designated Tesla as their top stock pick for 2025. This positive outlook is largely credited to Tesla’s innovative strides in areas such as autonomy and robotics, as emphasized by Gene Munster of Deepwater Asset Management.

Tesla's sales figures, particularly in the Chinese market, have also been robust, with the Model Y leading sales in November, further solidifying the company's market presence.

Price Action: At the close of trading on Wednesday, Tesla shares increased by 5.93%, finishing at $424.77. In after-hours trading, the stock continued its upward trend, gaining another 0.89% to settle at $428.57, according to data from Benzinga Pro.

Currently, Tesla stock holds a consensus “hold” rating among analysts. Stifel has set a price target of $411 for December 2. Predictions from Goldman Sachs, Cantor Fitzgerald, and Morgan Stanley average around $370, suggesting a potential downside of 13.67%.Tesla, Stock, Elon, Musk, Milestone