Tesla Shares Skyrocket for Electric-Car Delivery Record; See How Much They're Worth Now
Free Book Preview Money-Smart Solopreneur
Elon Musk had an excellent start to the week. Shares of Tesla , his electric car company, soared about 4.5% in one day . This after announcing that during the first quarter of 2021 they had a record of car delivery : 184,800 units worldwide.
On Monday, Tesla shares rose in price to exceed $ 700 per share . While the figure is still below the $ 883 each share was worth at the end of January, it is a significant jump from the $ 583 it cost in early March.
The escalation is due in large part to the fact that the automaker managed to overcome the shortage of processors that affected the entire sector. This was key to achieving the delivery of 184,800 vehicles in the first three months of 2021, a figure that exceeds the estimated goal of 177,822 units.
Model 3 deliveries in Europe pic.twitter.com/fiBNp2a6pG- Tesla (@Tesla) April 1, 2021
“ Tesla is performing flawlessly. I'm not surprised by strong deliveries , ”said Craig Irwin, analyst at Roth Capital Partners. However, he noted that stocks are "egregiously overvalued ," while acknowledging that "electric vehicles are an exciting place to be and Tesla is the leader . "
- It may interest you: Elon Musk was selected to join the management of the company that owns Miss Universe
How much higher could Tesla shares go?
Even weathering the ups and downs of the stock market, experts estimate that Tesla shares will continue to gain ground. At least three brokerages raised their price targets. Private investment firm Wedbush raised its price target by $ 50 to $ 1,000 , much higher than the median price target of $ 712.50, according to Refinitiv data cited by Reuters .
If projections come true, Tesla could add around $ 50 billion to its market value. Currently, the company has a market capitalization of $ 664 billion , according to Yahoo Finance . This makes it the most valuable automaker on the market, even though its production is minimal compared to competitors such as Toyota Motors, Volkswagen and General Motors.
Last Friday, the automaker said it was encouraged by the strong reception of its 'Model Y' vehicle in China and that it was rapidly progressing to full production capacity.
Backseat views from Model Y- Tesla (@Tesla) March 16, 2021
by loghi007 on Instagram pic.twitter.com/4ss4Hns7fn
JP Morgan analysts said in a note that Tesla's ability to produce nearly the same number of vehicles in the first quarter as it did in the fourth quarter of 2020 "stands out relative to the trend in global light vehicle production ."
In 2020, Elon Musk broke records for generating the most wealth in the shortest amount of time. This was largely thanks to Tesla stock increasing 8 times in value, making it the second richest person in the world that year.