May 20, 2022

Shares of Tesla have risen by 6.9% to $917.42 per share, already topping the most bullish analyst 12-month price forecast.

The cause of the major movement was investment bank Piper Sandler increasing Tesla’s price target to $928 per share. This figure exceeds all other targets for the stock, which actually briefly exceeded that figure in midday trading on Wednesday before closing slightly lower.

Piper Sandler expressed the belief that Tesla’s expansion in the clean energy sector will drive the stock higher. The call is based on growth patterns identified in the company’s battery and solar power projects.

Tesla has been pretty much a non-stop success story for investors over the past couple of years, with the share price rallying more than 100% this year alone. Tesla saw a 13% rise in their stock price last month after posting strong quarterly earnings, and earlier this month saw a 19% jump in one day after Argus Research raised its price target to $808.

There are fears amongst some investors that Elon Musk’s company might be in a bubble-like rally, driven by short covering and desire amongst investors to get involved with a trending stock. Only six of the analysts that cover Tesla have a buy rating.