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

Stock MarketsApr 05, 2021 08:55AM ET
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© 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
 

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Comments (5)
Renato M Alonso
Renato M Alonso Apr 05, 2021 8:52PM ET
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The world have Elon for a very Long time and you Must keep Musk in your mind .
Lawrenti Berija
Lawrenti Berija Apr 05, 2021 8:50AM ET
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these times are an Elondorado for con- masters like Mollusk
Remko Phone
Remko Phone Apr 05, 2021 8:18AM ET
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50 billion, wow, at their current P/E that is 50,000 cars. Tesla makes Bugatti look cheap
Michael Kaoud
Michael Kaoud Apr 05, 2021 8:18AM ET
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Dork
Zoran Petovic
Zoran Petovic Apr 05, 2021 7:22AM ET
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TSLA shorts r endangered species lol
Joel Schwartz
Joel Schwartz Apr 05, 2021 5:47AM ET
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Let me get this straight...Tesla beat estimates by 7,000 cars and added $50B market cap? And you’re going to tell me this isn’t a bubble? A $715 stock with less than $1 EPS? Really?
Show previous replies (11)
Mark Ansell
Mark Ansell Apr 05, 2021 5:47AM ET
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Telsa is not just about cars.
Meru Pet
Meru Pet Apr 05, 2021 5:47AM ET
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it is about calling your child with funny names...
Kenneth Fernandes
Kenneth Fernandes Apr 05, 2021 5:47AM ET
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Mark Ansell yeah its about selling stock to bobos
Paul Browning
Paul Browning Apr 05, 2021 5:47AM ET
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The rise of the whole market is about the very rich taking from the poor. Only by changing the tax structure to a fair one and prosecution of obvious manipulation will this change.
zryeup up
zryeup up Apr 05, 2021 5:47AM ET
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Tesla makes money on car credits sold to other companies. lol everything AROUND the EV biz. No one else is doing what they're doing.
 
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