By Kim Khan
Investing.com - Tesla (NASDAQ:TSLA) shares continued their breathtaking run Monday, blowing past $700 per share and gaining more than $100 in the session.
Tesla stock jumped 16% in afternoon trading, getting as high as $769 per share earlier, showing the hallmarks of a short squeeze.
Another price target hike for the stock arrived from the sell side, with Argus boosting its forecast for shares to $808, near the highest on Wall Street. Argus maintained its buy rating on the stock.
"Our positive view assumes continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3, which accounted for more than 80% of 4Q19 production,” Argus analyst Bill Selesky wrote in a note, according to StreetInsider.
“Despite past production delays, parts shortages, labor cost overruns, and other difficulties, we expect Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and beyond," Selesky said.
But with the way shares are running the way they are, the new price target could be eclipsed by midweek.
Earlier, Chinese battery maker CATL confirmed it had signed a deal to supply the automaker. Tesla (NASDAQ:TSLA) has recently commissioned its new factory in Shanghai and had flagged last week that it had diversified battery suppliers beyond traditional partner Panasonic.
Those short Tesla must be wondering what has to happen to the stock to retreat. Even amid Friday’s broad and bloody selloff, shares ended in the green.
The overall consensus estimate for shares from analysts is still way off the pace at about $456, so expect more target hikes in the near term.