- The electric auto maker's stock rose 6.9% on Wednesday.
- The catalyst is once again a big call on Wall Street.
- Shares of Tesla have rallied more than 100% this year alone, leaving investors curious about what is driving the stock to these sky-high levels.
Shares of Tesla are jumping yet again, rising 6.9% on Wednesday to $917.42 per share.
The catalyst for the electric automaker's stock once again is a big call on Wall Street. Piper Sandler hiked Tesla's price target to $928 per share, the highest on Wall Street, according to FactSet.
Ironically, Tesla exceeded that 12-month forecast in midday trading on Wednesday with its surge. The stock closed slightly below the price target.
Piper Sandler said Tesla's push into new areas of clean energy will drive the stock higher; however, the firm's new target price is below Tesla's peak earlier this month.
Shares of Tesla have rallied more than 100% this year alone, leaving investors curious about what is driving the stock to these sky-high levels. Last month, Tesla's strong quarterly earnings report gave investors more confidence about the company's balance sheet. Tesla's stock rose 13% in after-hours trading following its results.
Tesla's rally really got going earlier this month after Argus Research raised its price target to $808 on Feb 3. The shares jumped 19% that day. Then on the following day, billionaire investor Ron Baron said on CNBC that he believes Tesla's revenue could top $1 trillion in the next decade. The shares jumped 13% that day.
Wednesday's bullish call from Piper Sandler focused on Tesla's battery and solar power products business, which currently make up less than 10% of Tesla's sales. However, the analyst said he sees a similar growth pattern with those products that he has seen with Tesla's cars.
Some investors worry that Elon Musk's company might be in a bubble-like rally, unmoored from its fundamentals and fueled by short covering and the fear of missing out among investors not holding the stock.
Despite some bullish calls on the Street, 45% of the 31 analysts who cover Tesla have a sell rating on the stock, according to FactSet. Only six analysts who cover Tesla recommend buying the stock.
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