Tesla (Nasdaq: TSLA) Stock Smashes All-Time High Today on Massive China Deal

Tesla Motors Inc. (Nasdaq: TSLA) stock hit an all-time high of $272 today, after the company signed a deal with China's second-largest mobile phone company to build 400 charging stations in 120 Chinese cities.

The partnership with China United Network Communications Corp. sent the Tesla stock price up more than 3% from yesterday's closing price of $263.86.

In addition to hundreds of charging stations, the two companies will also be building 20 "supercharging" stations across the country, which work 16 times faster than traditional stations.

According to Tesla spokeswoman Peggy Yang, the automaker will be providing the charging equipment while China Unicom supplies the land.

Chief Executive Officer Elon Musk has long considered China a major part of Tesla's future. The company allowed Chinese consumers to preorder Model S sedans last August, and Tesla delivered its first vehicles to the country in April.

TSLAAt the time, Musk stressed the importance of the Chinese market, saying "In dollar terms I think over time we'll probably end up investing hundreds of millions of dollars in charging infrastructure in China."

"At some point in the next three or four years we'll be establishing local manufacturing in China," Musk said. "China is very important to the future of Tesla."

The Chinese government is also betting big on the electric vehicle (EV) market. Earlier this year, government officials announced that they want 500,000 electric and plug-in hybrid vehicles operating in the country by 2015, and 5 million by 2020.

A Bloomberg report today suggests that the Chinese government may provide up to $16 billion for charging station construction to spur clean-car sales. In July, the government also mandated that 30% of all government vehicles must be electric-powered by 2016.

As the premier developer of electric vehicles, Tesla is perfectly positioned to profit from explosive growth in China's EV market. As evidenced by today's price surge, TSLA is already profiting in China.

Tesla's (Nasdaq: TSLA) Huge Gains Are Just the Start

TSLA is now up nearly 80% in 2014, and more than 20% in the last month. For TSLA shareholders, the ride has been historic, as they've seen gains of 713% since January 2013.

But those 713% gains are just the start for TSLA stock. Money Morning's Chief Investment Strategist Keith Fitz-Gerald sees TSLA going higher from here. Much higher....

"I believe TSLA stock will double within the next 12 months," Fitz-Gerald said. "This company is on track to see a stock explosion that will make its surge back in the spring of 2013 look like a speed bump."

Here's the full story from Keith Fitz-Gerald on why TSLA stock will double in one year - plus you'll get a way to profit from Tesla stock's rise and only a pay a fraction of its $270 per share price...

Join the conversation on Twitter @moneymorning and @KyleAndersonMM using #Tesla.

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