Tesla shares hit a 2025 high at the close. Will there be a new record?

Shares of Tesla at the end of trading on September 22 updated their maximum for 2025. The papers grew on the background of improved assessment by analyst Piper Sandler: the investment bank expects the quotes to grow by another 15%. In addition, investors are optimistic about the future - the company's ambitions in the field of autonomous driving and artificial intelligence, writes Yahoo Finance. Some expect that Tesla securities are not far from a new record, adds Barron's.

During trading on September 22, stock quotes of Tesla rose more than 4%, almost to $445, but by the end of the day reduced the pace to 1.9% and ended trading at $434.21. This marked the highest closing price in 2025. The previous high was $428.22 and was recorded on Jan. 15, Yahoo Finance notes.

The papers rose in price for the ninth time in the last ten trading days. Now the most optimistic investors hope for a new record, Barron's believes. For this purpose securities should add about 10.5% more (current record at closing - $479.86 at the end of trades on December 17).

Investors on Monday were encouraged by Piper Sandler analyst Alexander Potter: he raised the target price of Tesla shares from $400 to $500 and maintained a "buy" recommendation, Yahoo Finance writes. The new target assumes growth of quotations by 15% from the current level.

Potter made the decision to increase his target price on Tesla shares after a visit to China, where he said local automakers are looking back at Tesla for work on artificial intelligence and unmanned vehicle technology.

Potter said he heard in meetings with electric car makers including Xiaomi, Li Auto and Leapmotor that Chinese companies are already ahead of Tesla in terms of build quality, but that Tesla itself is leading or at least on par with them in artificial intelligence vehicles and infrastructure.

According to Potter, in the realm of "real-world" artificial intelligence, Chinese electric car makers are "focused on Tesla - not the other way around." One of the meeting participants put it this way: "If Tesla didn't go from zero to one, we wouldn't be able to go from one to a hundred," the analyst wrote.

Piper Sandler also praised the experience with the latest version of Tesla's driver assistance system (FSD) and predicts record sales in the third quarter, Yahoo Finance writes.

"Bottom line: Tesla remains our top idea for investing in autonomous cars and robotics," Potter is quoted by Barron's as saying.

Tesla shares have added more than 30% over the past month. Among the factors supporting the rally: Elon Musk's $1 billion stock purchase last week, the board's offer of a new compensation package to the company's CEO, and Tesla's plans to expand its robotaxi service to Nevada and Arizona after testing began this summer in Austin, Texas.

Where Tesla shares will go next is impossible to guess, Barron's notes. The stock has grown so fast and risen so high that it now looks overbought - a technical term that means there may be a pause in growth, the publication explains.

This year, the stock has ranged from $212 to $489. That $277 spread represents about 80% of the average stock price. By comparison, Apple has a spread of about 40%, Barron's notes.

Tesla will report global vehicle deliveries for the third quarter in early October and will report financial results on October 21. According to FactSet, Tesla's global deliveries for the third quarter will total about 446,000 vehicles. That's about 16% more than the second quarter, but still 4% less than the third quarter of 2024. However, few analysts have updated their supply forecasts since late July, notes Investor's Business Daily.

Piper Sandler has projected Tesla's third quarter deliveries at 495,000 vehicles. GLJ Research gives a more restrained estimate of 467,000.

According to MarketWatch, 51 analysts have rated Tesla shares. Of these, 24 recommend buying the stock (Buy and Overweight ratings), 16 recommend holding (Hold), and 11 recommend selling (Underweight and Sell). The Wall Street consensus price target is 22.6% below the closing price on September 22: the market expects the stock to fall to $336.1.

This article was AI-translated and verified by a human editor