Tesla Inc's shares rose to a record high on Monday by 13 percent, stretching their advance to more than 40 percent in five sessions after Wall Street raised its price targets on the electric car group after its solid quarterly deliveries report.
The day's rally lifted Tesla's stock market value by $30 billion, overshadowing Ford Motor's entire market cap, currently at $25 billion.
JMP Securities raised its price goal to $1,500 from $1,050 after Tesla posted higher-than-estimated orders in the second quarter in spite of plummeting demand in the broader automotive industry as the global health crisis battered economies around the world.
Revenues from cars are just the start for Tesla (TSLA), analysts said. While its vehicles have a high margin compared with its rivals in the industry, Tesla's potential with full autonomous operating systems, solar production, custom chip design, energy storage, the potential for the company is huge.
The market is finally catching on, and its share price reflects that, market observers said. Currently valued at $254 billion, far surpassing the market cap of other car manufacturers, Tesla looks to soon be at par with other major tech valuations like Apple and Microsoft.
Tesla competitor NIO Inc.'s stock also climbed, in the midst of the China-headquartered electric vehicle group's robust June sales report. Meanwhile, among other EV companies, shares of Workhorse Group Inc. retreated after a record 11-day win streak and Nikola Corp. was on track for a fourth consecutive decline.
NIO's shares soared 22.6 percent to $11.51, to also notch a fifth consecutive advance. That was the stock's second-biggest close since it went public on Sept. 12, 2018. The company's record close of $11.60 was hit last Sept. 13, 2018.
Meanwhile, J.P. Morgan analyst Ryan Brinkman, a notable Tesla bear, slightly raised his stock price target for Tesla to just $295, which is still a whopping 75 percent below Thursday's closing price of $1,208.66, from $275, following the deliveries report, but his price target remains the lowest of the 32 analysts polled by FactSet.
Brinkman reiterated his Underweight grade for the Elon Musk-led company, citing lofty pricing, and cautioned that any better outcome could include items of a one-time nature, which includes credit sales and release of deferred sales linked to self-driving features.
The stock looks to be shifting higher thanks to JMP Securities analyst Joe Osha, who raised his price aim on Tesla's stock from $1,050 to a new Wall Street record of $1,500. Second-quarter deliveries came over his projection and Osha now estimates Tesla will reach the $100 billion revenue mark in 2025.