Here's What Helped Boost Tesla Stock To A New All-Time High

Shares of Tesla Inc TSLA hit a new all-time high Wednesday.

The night before, U.S. lawmakers agreed on an extension of tax credits for electric vehicle charger installations, electric motorcycles and fuel cell vehicles.

Under the recently proposed GREEN Act, the cap for EV sales for tax credit purposes would be raised from 200,000 to 600,000 and the per-vehicle tax credit would be reduced from $7,500 to $7,000.

Tesla and GM have already hit the 200,000 incentive cap. The problem with this: the incentive now favors newer EV manufacturers.

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Tesla Analyst Says Automaker 'Hitting Its Stride'

In addition to the spending bill giving investors optimism around more EV-related incentives, Bloomberg also reported that Tesla could cut the price of Chinese-built Model 3s by 20% in 2020.

Oppenheimer analyst Colin Rusch told CNBC he believes Tesla is "hitting its stride," and said the reported price cuts in China are a function of passing on savings to consumers.

Tesla stock rallied roughly 4% and hit an all-time high of $395.22 Wednesday and closed at $393.15.

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Photo courtesy of Tesla.