Connect with us

Hi, what are you looking for?

Stock

Tesla’s market value set to gain $50 billion on record EV deliveries

Stock Markets1 hour ago (Apr 05, 2021 08:55AM ET)

(C) Reuters. FILE PHOTO: Visitors wearing face masks check a China-made Tesla Model Y sport utility vehicle (SUV) at the electric vehicle maker’s showroom in Beijing

By Akanksha Rana and Subrat Patnaik

(Reuters) – Tesla (NASDAQ:TSLA) 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% 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. Wedbush also raised its rating to “outperform” from “neutral”.

“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.”

“EVs are an exciting place to be, and Tesla is the leader.”

Chief Executive Officer Elon Musk’s personal wealth has been boosted by a more than eight-fold surge in the stock’s value last year, even though its production is just a fraction of rivals such as Toyota Motor (NYSE:TM), Volkswagen (DE:VOWG_p) and General Motors (NYSE:GM).

Tesla delivered 184,800 vehicles globally during the first quarter of 2021, above estimates of 177,822 vehicles, according to Refinitiv data.

“Great work by Tesla team!” Musk tweeted https://twitter.com/elonmusk/status/1379033568882663426 on Monday. “Special mention of Tesla China.”

Tesla’s shares were at $713 before the bell, while other EV makers, including NIO Inc, Workhorse Group and Xpeng Inc were up about 3%.

“The (EV) sector looks primed to resume its march higher, considering the surging demand for EVs in China, Europe, and the U.S. Tesla’s delivery numbers could be the spark needed to jumpstart the next rally,” said Jesse Cohen, senior analyst at Investing.com.

Tesla’s market value set to gain $50 billion on record EV deliveries

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved