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.” CEO 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, Volkswagen and GM.