Tesla Inc was set to add about $50 billion to its market value on Monday after the electric carmaker reported record deliveries due to strong demand in China, which helped it offset the impact of a global auto parts shortage.
In pre-market trading, the stock gained nearly 8% and was on track to reach its highest level in over a month.
Statement From Tesla
The company said on Friday that it was encouraged by the positive response to its Model Y crossover in China and that it was rapidly approaching full production capacity.
Analysts were optimistic because, despite a global chip shortage that impacted the entire auto industry, various supply chain issues, and rising competition, Tesla managed to produce roughly the same number of vehicles in the first quarter as it did in the fourth quarter.
At least three brokerage firms have raised their price targets on Tesla stock. Brokerage Wedbush was the most aggressive, increasing its price target by $50 to $1,000, which was significantly higher than the median price target of $712.50, according to Refinitiv data. Wedbush upgraded its rating from “neutral” to “outperform.”
At least three brokerage firms have raised their price targets on Tesla stock. Brokerage Wedbush was the most aggressive, increasing its price target by $50 to $1,000, which was significantly higher than the median price target of $712.50, according to Refinitiv data. Wedbush upgraded its rating from “neutral” to “outperform.”
“Tesla is executing flawlessly. “I am not surprised by the strong deliveries,” Roth Capital Partners analyst Craig Irwin said, adding that the stock is “egregiously overpriced.”
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