Tesla Inc. TSLA According to Benzinga Pro, shares were up 1.38% on Monday morning, hovering near the $400 mark before trading began. This increase follows Tesla’s announcement of a new, affordable vehicle model during an investor meeting with Deutsche Bank.

What happened: The electric vehicle giant revealed plans for the Model Q, a sub-$30,000 car aimed at the Chinese market. The Model Q is intended to compete with the BYD Dolphin and the Volkswagen ID.3.

Tesla shares also reached $401.16 for the year RobinhoodOvernight trading is approaching its November 2021 record high of $407.36.

On Friday, Tesla shares closed at $389.22, up 5.34%. The recent increase is due to positive analyst reports, particularly from Bank of America Securities. The company raised its price target on Tesla from $350 to $400 and maintained a Buy rating. BofA Senior Automotive Analyst John Murphy highlighted insights from a visit to Tesla’s Texas gigafactory and the latest full self-driving software as influencing factors.

See also: Google CEO Sundar Pichai pushes back against Microsoft over AI, dismisses Satya Nadella’s criticism: “I would like to do a side-by-side comparison… any day, any time.”

Why it matters: The announcement of the Model Q is part of Elon Musk Strategy to expand Tesla’s reach in the competitive Chinese market. The new model is expected to increase Tesla’s market share against local rivals such as BYD and international players such as Volkswagen. This move is in line with Tesla’s ongoing efforts to innovate and conquer new segments, as demonstrated by the recent unveiling of the Cybercab, a vehicle designed for autonomous driving without traditional controls.

Additionally, Qraft Technologies, a South Korean fintech company, has increased its investment in Tesla, reflecting confidence in Musk’s dynamism and the company’s growth potential. This decision comes after a significant 40% rise in Tesla shares in November, despite challenges during the Robotaxi event in October.

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Disclaimer: This content was created in part with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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