Shares of Tesla surged 17% on Monday, on pace to close at an all-time high, following an optimistic report on the company’s electric car prospects.
Tesla is expected to benefit from its position in the EV industry despite past hurdles from production delays, analysts at Argus Research say.
Argus Research reaffirmed a “buy” rating on Tesla, raising its target to $808 from $556. That implies a rise of as much as 24% from Friday’s closing price. It marked the second time the firm lifted its target on the company this year.
The stock jumped as much as 21% to $786.14 on Monday, eclipsing $700 per share for the first time in intraday trading. The stock has rallied 82% so far in 2020.
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“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,” Bill Selesky, analyst at Argus, said in a note.
The move comes after Tesla delivered stronger-than-expected fourth-quarter earnings last week. The company topped analysts’ profit and revenue estimates. For 2020, Tesla said vehicle deliveries should “comfortably exceed 500,000 units,” up from 367,500 last year.
Selesky anticipates strong demand for Tesla’s new Model 3. In early January, Tesla said it delivered 92,550 Model 3 cars, beating expectations for 87,900 Model 3 vehicles. It reported deliveries of 112,000 vehicles globally during the fourth quarter, a record for the company.