US Close: S&P 500 makes fresh records, Tesla eyes $1000 post Hertz deal

US stocks are rallying as investors start to dial back Fed rate hike bets and focus on this week’s wrath of tech giant earnings.  It is way too early to price in two Fed rate hikes next year, that could eventually become the base case scenario, but we will need to see inflation persist a couple more months before that should be priced in. 

Wall Street will clearly know how bad the current supply chain issues have impacted American businesses after this week’s results from Facebook, Alphabet, Amazon, and Apple.   Ad revenue will closely be watched this week and if it disappoints, that could put a damper on a robust holiday spending outlook.  If businesses refrain from advertising because they won’t have product in time, that could spell trouble for fourth quarter earnings. Tesla helped boost the S&P 500 index to record highs after securing a major contract from Hertz. 


As if Tesla shares have not rallied enough, it seems they may continue to rise after a massive investment into elective vehicles from Hertz and an upgrade from Morgan Stanley’s Jonas. 

Hertz interim CEO said, “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest.”  Hertz is committing to an initial order of 100,000 Teslas by the end of 2022, which should be valued around $4.2 billion.  This initial order from Hertz covers around 10% of the deliveries Tesla will have this year. 

Wall Street is starting to believe the skyrocketing move with Tesla’s stock price is nowhere near over since Tesla has a massive lead in the EV space and improving growth potential as the US, European and Asian markets for electric cars grows.  Tesla has done well during the global chip shortage that has devastated most car manufacturers.  Tesla’s ability to accept alternative chips has provided them with an edge in getting closer to their demand targets. 

The Model 3 became the best-selling vehicle in Europe last month and that has everyone buzzing that this is a key moment in transitioning to EVs.  World governments will meet later this week at COP26 to figure out how to cut carbon emissions while also battling with a global energy crisis.     

Morgan Stanely’s Jonas raised his Tesla’s price target from $900 to $1200.  Tesla’s stock rally was uninterrupted this morning on mounting concerns supply-chain issues are not easing, which could suggest a break of the psychological $1,000 level could see momentum towards $1,120. 

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya