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Why Tesla, Inc. Stock Moved Higher Tuesday

Tesla steering wheel with Tesla logo

What happened

Tesla (NASDAQ: TSLA) stock is trading higher on Tuesday. Shares increased as much as 4.4%, and are up about 4.1% at the time of this writing. The stock's rise comes as Tesla announces an unprecedented safety rating for its Model X SUV, and an analyst hikes his price target for Tesla stock .

So what

Tuesday morning, Tesla said its Model X was the first SUV to be awarded a 5-star rating in every category and every subcategory from the U.S. National Highway Traffic Safety Administration (NHTSA). Thanks to the fundamental superiority of the all-electric design of Tesla's vehicles, Model X achieved a lower probability of serious injury than any SUV, and any car except Tesla's Model S sedan. Furthermore, Model X was found to be the safest SUV in history by a significant margin.

Tesla steering wheel with Tesla logo

Image source: Author.

In addition, Berenberg analyst Alexander Haissl gave Tesla stock a $464 12-month price target, CNBC reported Tuesday morning . "[C]omplacency" from big automakers toward electric vehicles will give Tesla a "near-monopolistic opportunity to gain market share and outcompete the incumbent automotive industry," Haissl said in a note to clients.

Now what

Tesla will be put to the test in the second half of 2017, as it brings its Model 3 to market in July and strives to hit its target production rate for the Model 3 of 5,000 vehicles per week before the end of the year.

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Daniel Sparks owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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