Gene Munster, managing partner at Deepwater Asset Management, has asserted Tesla Inc. (NASDAQ:TSLA) as the most innovative company, surpassing tech giants like Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Nvidia Corporation (NASDAQ:NVDA).
What Happened: On Tuesday, Munster took to X, formerly Twitter, and pointed out that Elon Musk-led Tesla's stock surged by 84% over the last 65 trading days, following the 'We, Robot' event in October.
He attributed Tesla's impressive stock performance to renewed confidence in autonomy and future robotics. "As a comparison, the rest of the Mag 7 is up, on average, 10%, and the Nasdaq up 8%."
Munster went on to add that Tesla's current market cap stands at $1.3 trillion.
He compared Tesla to other companies with market caps exceeding $2 trillion, such as Apple, Amazon.com, Inc. (NASDAQ:AMZN), Google, Microsoft Corporation (NASDAQ:MSFT), and Nvidia, asserting that Tesla is arguably the most innovative among them.
"In other words, I believe Tesla's market cap has plenty of room to grow," he stated.
$TSLA is up 84% over the last 65 trading days, or since the 10/11 'We, Robot' event. As a comparison, the rest of the Mag 7 is up, on average, 10%, and the Nasdaq up 8%.
Tesla's run is a direct result of a renewed belief in autonomy and future robotics. As Franz said at 'We,...— Gene Munster (@munster_gene) December 10, 2024
Why It Matters: The 'We, Robot' event featured 19 Cybercabs and 29 Model Ys driving autonomously, with no safety-related incidents reported, according to Tesla executive Ashok Elluswamy.
Previously, Cathie Wood, CEO of ARK Investment Management LLC, also described Tesla as "the largest AI project on Earth," underscoring its transformative potential across multiple sectors.
Earlier this week, Gary Black, managing partner at The Future Fund LLC, raised his price target for Tesla by 27% to $380, citing the potential launch of a $25,000-$30,000 hatchback model.
This new offering could capture approximately 15% of the global compact car market, further boosting Tesla's growth prospects.
In China, Tesla's sales momentum is also noteworthy, with insurance registrations reaching 21,900 units for the week ending Dec. 8, marking its second-best week in 2024.
Price Action: On Tuesday, Tesla shares ended the trading session with a 2.187% increase, closing at $400.99. During after-hours trading, the stock saw a further rise of 0.55%. So far this year, it has climbed 61.42%, as per Benzinga Pro data.
Analysts currently have a consensus "hold" rating for Tesla stock, with Stifel setting the highest price target at $411 on Dec. 2. Recent price targets from Cantor Fitzgerald, Morgan Stanley, and Deutsche Bank average $378.33, indicating a potential downside of 6.17%.
