CALIFORNIA: Tesla Inc was set to add about $50 billion to its market value as the electric car-maker’s shares surged on Monday, after it posted record deliveries on strong demand in China that helped it offset the impact of a global shortage in auto parts.
The stock jumped nearly 8 per cent in pre-market trading and it was on track to hit its highest in over a month.
The company said on Friday it was encouraged by the strong reception of its Model Y crossover in China and it was quickly progressing to full production capacity.
Analysts remained hopeful as despite a global chip shortage that has slammed the entire auto sector, various supply chain issues and rising competition, Tesla still managed to produce roughly the same amount of vehicles in the first quarter as in the fourth quarter.
At least three brokerages raised their price targets on Tesla’s stock.
Brokerage Wedbush was the most aggressive, increasing it by $50 to $1,000, much higher than the median price target of $712.50, as per Refinitiv data.
“Tesla is executing impeccably. I am not surprised by the strong deliveries,” said Roth Capital Partners analyst Craig Irwin, even as he added that the stock is “egregiously overvalued.”
“Great work by Tesla team!” Musk tweeted on Monday. “Special mention of Tesla China,” Musk added.