Tesla Inc. was set to add about $50 billion to its market value after its shares surged 8% in premarket trading on Monday, according to Reuters. The stock surge was fueled by a record 184,800 electric vehicle deliveries during the first quarter of 2021, more than the projected 177,822.
Tesla’s record deliveries were fueled by strong demand in China that offset the impact of the global shortage of auto parts.
Following the above-estimate deliveries, Tesla said it was encouraged by the strong reception of its Model Y crossover in China and is progressing to full production capacity.
Analysts are hopeful that Tesla managed to produce almost the same amount of vehicles in the first quarter as in the fourth, despite a global shortage of chips.
Brokerages have raised their price target on Tesla’s stock with Wedbush, the most aggressive, increasing it by $50 to $1,000, up from the median target of $712.50.
The record deliveries come when the EV sector is projected to grow, on surging demand in China, Europe, and the U.S.
Jesse Cohen, a senior analyst at Investing.com, say Tesla’s numbers could be the spark needed to jumpstart the next rally.
Tesla stock is currently gaining. TSLA: NASDAQ is up 4.94%
