Tesla’s stock is back in the limelight! After a bumpy start to the year, the electric vehicle giant has soared by an astonishing 45% since July, outshining fellow tech titans in the famed "Magnificent Seven". In sharp contrast, Microsoft seems to be losing ground.

Analysts Ignite the Tesla Fire!

Tesla shares saw another uptick of 1% in premarket trading this Tuesday, building on Monday’s impressive 1.9% surge. The excitement follows a significant price target increase from Mizuho’s top analyst, Vijay Rakesh, who raised it from $375 to a dazzling $450! Rakesh credits a robust outlook for 2026 as a game-changer, while analysts buzz about the possibility of a price hike on certain Tesla models next year, further fueling investor optimism.

UBS also joined the party, projecting Tesla's third-quarter deliveries will hit 475,000 vehicles, outpacing Wall Street’s estimates by about 8%. This surge in demand is largely driven by American consumers racing to secure a $7,500 tax credit before it vanishes at the end of September. Analyst Patrick Hummel predicted, "We believe Q3 could deliver the highest quarterly U.S. deliveries since mid-2023 and possibly the highest ever!"

From Underdog to Superstar!

Just a few months ago, Tesla was trailing behind the exclusive Magnificent Seven, suffering a 20% dip in the first half of 2025. But since July, the company has transformed from a laggard to a leader, outperforming its peers dramatically. While the wider tech sector, including the Mag 7, climbed 20%, Tesla soared high and mighty.

The momentum doesn’t solely come from numbers; CEO Elon Musk has been keeping the buzz alive with a $1 billion stock buyback, new compensation proposals, and thrilling announcements regarding robotaxi advancements and humanoid robots. Coupled with a Federal Reserve rate cut that simplifies financing for new vehicles, Tesla is looking unstoppable once more.

Microsoft’s Dismal Performance