The U.S. Consumer Price Index (CPI) not only fell short of market expectations, but Tesla’s stock also surged over 8% after Morgan Stanley, a leading U.S. investment bank, raised its target price for Tesla to $800.
On Wednesday, Tesla’s stock soared 8.04% to close at $428.22 on the New York Stock Exchange.
As the CPI came in below market expectations, U.S. markets rallied. The tech-heavy Nasdaq, sensitive to interest rates, jumped 2.45%.
Amid these developments, Morgan Stanley raised its target price for Tesla to $800, citing strong sales in China. This suggests that the stock could potentially rise an additional 87% from its current price.
Indeed, Tesla recently launched its latest Model Y in China and has reportedly seen strong sales. A prominent Chinese blogger claimed that the Model Y received approximately 50,000 orders in just one day.
The combination of lower-than-expected CPI and reports of strong sales in China appears to have fueled Tesla’s more than 8% surge today.