Tesla, Inc. (NASDAQ:TSLA) surpassed General Motors Company (NYSE:GM) as the biggest automaker by market value after receiving a new price target from an analyst.
During Monday morning trading, Tesla’s market capitalization reached a high of $51.17 billion, beating GM’s $51.1 billion.
Analyst Alex Potter from Piper Jaffray (NYSE:PJC) set a new price target of $368 per share, up from $223 per share, for the Palo Alto, California-based firm. Potter is apparently confident in Tesla delivering the Model 3 on time in 2017. Moreover, the analyst said that “Tesla isn’t just another company” to its customers, employees, and shareholders.
“We sympathize with the bears – but with (arguably rational) arguments probably won’t matter,” Potter shared, in a report by CNBC. “In many ways, TSLA seems to play by its own rules. The company burns through cash at a rate that better-established companies would likely be crucified for … Tesla’s production timelines are unreasonably fast. Yet, because of its superior products, loyal shareholders, and inspiring mission, TSLA remains unscathed.”
The Silicon Valley’s darling car company has been in the spotlight among investors lately, with shares rising more than 40% in 2017. Last week, Tesla reported record-high Q1 deliveries of 25,000 vehicles, up 69% from the same period a year ago.
While it seems like things are going well for Tesla, investors should still be cautious and prepare themselves for a “bumpy ride,” the analyst concluded.
Tesla is up 2.5% to $310.25 per share in midday trading Monday, and GM is trading at $33.95 per share with a slight increase of 0.73%.
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