Tesla Hits Record High For 2023 In Premarket: What's Happening?

Shares of electric vehicle giant Tesla, Inc. TSLA rose in premarket trading, extending the upward momentum seen since the middle of May.

In premarket trading on Wednesday, Tesla rose 1.55% to $224.75, according to Benzinga Pro data.

If the sentiment seen in the premarket is sustained through the session, the stock could extend its winning streak to a ninth straight session.

Some of the buoyancy seen in the stock is attributable to the broader market strength achieved on the back of the enactment of the budget deal that averted a potential economic catastrophe and expectations that the Federal Reserve would pause when it meets next week.

See Also: Everything You Need To Know About Tesla Stock

The stock is currently trading below the average analysts’ price target of $199, compiled by TipRanks. Traders expect sell-side firms to raise their price targets for Tesla in the coming days, citing the stock overshooting their price objective.

Fundamentally, not much has changed as demand for its vehicles has not taken off despite the company’s aggressive price cuts.

That said, investors are excited by the company’s Cybertruck launch, likely in the fourth quarter, and the Model 3 refresh.

Some of the other factors that may have served to calm the nerves of investors are CEO Elon Musk handing over the reins to someone else at Twitter and also his recent China visit.

Read Next: Tesla Up 40% Since Late-April Lows: Analyst Outlines 4 Factors That Can Keep Stock Turbocharged