Investing.com – Shares of Tesla kept their momentum going Monday as the stock jumped again, topping $500 for the first time.
Tesla (NASDAQ:) rose 6.5% in midday trading to $508.80
The stock received a double boost today, from China and from the sell-side on Wall Street.
China’s government said over the weekend that it won’t reduce subsidies for electric vehicles at the same pace it did last year, helping the whole electric vehicle sector and Tesla, which just started production in Shanghai, in particular.
Minister for Industry and Information Technology Miao Wei said in Beijing Saturday that the government wouldn’t cut EV-purchase subsidies on July 1, as they were last year, Bloomberg reported.
And today, Oppenheimer boosted its price target on Tesla stock to $612 per share from $385.
“(W)e believe the company’s risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace.” Oppenheimer analyst Colin Rusch wrote in a note.
Rusche cited advantages Tesla has over competitors, including battery technology, powertrain design and customer enthusiasm.
Oppenheimer now has the second-highest price target for Tesla on Wall Street, behind Elazar’s target of $734 per share.
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