Tesla stock skyrockets to new record as bulls think it'll keep climbing
A single share of Tesla is now more than $900.
So far, so good for Tesla CEO Elon Musk this decade. Following a surprise profit in the third quarter of last year, higher than expected vehicle deliveries and a profit booked in the fourth quarter, Wall Street is responding in a big way.
On Tuesday, Tesla stock rose another 17% by the afternoon. The rally comes after a surge of more than 18% on Monday. The major upswing on Monday followed Argus Research's upgraded target price of $808, up from a previous $556 per share. CNBC reported the firm cited positive fourth-quarter financial results as part of its upgraded target price. Shares reached an all-time high of $783 Monday.
Today, $783 is in the rearview mirror. As of this writing, Tesla shares surged past the $900 mark to $904.77. Reuters reported Tuesday the latest rally comes as Tesla's battery partner, Panasonic, reported profits on the two companies' venture. It's the first time Panasonic has reported figures in the black.
All of Argus Research's bullish predictions hinge on continued demand for the Model 3 and healthy revenue from Teslas two older models, the Model S and Model X. The carmaker seems to believe it has everything necessary for success, as it forecasted delivering 500,000 vehicles in 2020. In the fourth quarter of last year, Tesla delivered a whopping 112,000 vehicles, which exceeded Wall Street estimates by several thousand cars.
Tuesday's bonkers stock skyrocket follows record vehicle deliveries in 2019, and healthy financial numbers from Tesla's fourth-quarter earnings call. Reports of Tesla's ride-sharing app also dropped on Tuesday.
The ongoing positive Wall Street performance is a boon for Musk himself, too. The CEO will be in for a $364 million payday should the company's market capitalization keep above $100 billion. It's part of an aggressive pay package agreed to in 2018, which set some rather lofty goals for Musk and Tesla.
The carmaker reached the $100 billion threshold that triggered the potential payout last month. Now, it needs to hold at a one-month and six-month average for Musk's first big pay day.
Originally published Feb. 3.
Update, Feb. 4: Updated to reflect Tesla's continued positive Wall Street performance and add information about Panasonic venture.
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