**Analyst Urges Tesla to Raise Equity Following Stock Surge**

Electric vehicle giant Tesla (TSLA) has seen its stock price target significantly increased by Jefferies Financial Group analyst Philippe Houchois, from $195 to $300—a substantial 54% boost. Despite this optimistic adjustment, Houchois has retained a Hold rating for the stock. Additionally, Houchois has made a bold suggestion for Tesla to capitalize on the current market conditions by raising equity, a move that would involve issuing more stock and possibly diluting the value for existing shareholders.

Houchois points out that a large portion of Tesla’s $26 billion net cash reserve originates from capital raised back in 2020. He believes that a similar strategy could prove advantageous today. By issuing additional equity at market value, Tesla could strengthen its financial position amidst growing competition and increasing investment demands across different business sectors.

The suggestion comes amid a robust post-election rally that has seen Tesla’s stock rise approximately 25% since Donald Trump’s win in the U.S. presidential election on November 5. This surge has driven Tesla’s market capitalization to reach an impressive $1 trillion, with the stock trading at $313 per share—above the price targets set by many analysts, including Houchois’ revised target.

While there is the potential for Tesla’s stock to experience a pullback from its current high, Houchois remains positive about its long-term prospects. He notes that assuming market competitiveness and deregulation continue, these factors will likely elevate Tesla’s growth trajectory over time.

Currently, Tesla stock holds a consensus Hold rating from 35 Wall Street analysts, compiled from 11 Buy, 16 Hold, and eight Sell recommendations made over the past three months. The average price target stands at $207.83, indicating a potential downside risk of 33.43% from its present trading level.