On Monday The American Automotive, energy storage, and solar power company’s Share jumped at a record high. The 13% Surge extended their rally to over 40% in five seasons, which raised their stock price by $30 billion on that very day, overshadowing the Value of Ford Motor Co, Currently at $25 Billion.
The Automaker continued to be in the business in spite the pandemic has shaken the global automobile industry economically. On Thursday they have recorded higher than expected vehicle delivery in the second quarter. The company reported 90,650 deliveries, while the average estimate was about 70,300.
Joe Osha, an analyst at JMP Securities raised his share price target at $1,500, which results in an all-time intraday high of $1,342 per share.
“We believe that the question to be considered is not whether the stock is expensive on current valuation measures, but what the company’s growth and competitive position signal about the stock’s potential for the next several years,” JMP Securities analyst Joseph Osha wrote in a client note.
With higher than expected profit in the second quarter, tesla would mark for the first time for four consecutive quarter profits in their history.
However, according to many investors, the increase of 500% of Tesla’s stock over the past year is unsustainable. The stock is trading at 158 times expected earnings, which is abnormally overpriced according to Refinitiv
After Monday’s Surge, Tesla’s market value stood at $245 billion, which leads the company as the world’s most valuable automaker by that stratagem