Tesla shares surpassed the $700 mark for the first time — and climbed within striking distance of $800 — after a pair of analysts sharply raised their price targets for the stock, citing surging demand for the company’s electric cars.
Argus Research on Monday raised its price target for shares of the automaker headed by billionaire Elon Musk to $808 from $556, citing “continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3.”
“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.”
A research firm called ARK Invest, meanwhile, said late Friday it expects the stock to be worth at least $7,000 — and possibly as much as $15,000 — by 2024, adding there’s “a 25 percent probability” the shares will be at the upper end of that range by then.
ARK’s eye-popping price target was based on “updated expectations for electric vehicle cost declines and demand,” as well as “estimates for the potential profitability of robotaxis.”
Tesla shares on Monday briefly surged more than 20 percent to hit an all-time high of $786.14. Recently, they were up more than 16 percent at $756.01.
That makes Tesla the second-most valuable car company in the world, with a $137 billion market capitalization that’s second only to Toyota’s.
Last week, Tesla surpassed Volkswagen, currently worth $82 billion. General Motors and Ford are currently worth $48.3 billion and $35.5 billion, respectively.
Shares of Tesla are up nearly 75 percent since the start of the year — and more than 30 percent since last week, when the company delivered its second consecutive profitable quarter.
The Palo Alto, Calif.-based Tesla said it expects to “comfortably exceed” 500,000 vehicle deliveries in 2020.
Tesla — which has been dogged by a history of failing to consistently meet its ambitious production targets — also said last week that production of its hotly awaited Model Y compact SUV has begun “ahead of schedule” and that the first cars will hit the streets next month.