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Tesla shares surge after blowout results, strong delivery forecast

Published 01/30/2020, 08:50 AM
Updated 01/30/2020, 08:56 AM
Tesla shares surge after blowout results, strong delivery forecast
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(Reuters) - Shares of Tesla (NASDAQ:TSLA) Inc rose 11% and were set to open at a record high on Thursday as Wall Street analysts cheered the company's better-than-expected quarterly results and delivery targets for the year.

Tesla shares have been on a tear for the last six months and the company's market value now is more than Ford Motor (NYSE:F) Co and General Motors Co (NYSE:GM) combined and second to only Japan's Toyota Motor Corp.

At least nine analysts raised their price targets on the stock, with Canaccord Genuity's analyst Jed Dorsheimer more than tripling his price target to $750.

The higher delivery forecast suggests Tesla is looking at a steadier chapter after years of steep losses, production troubles and clashes between Chief Executive Officer Elon Musk and U.S. regulators.

Credit Suisse (SIX:CSGN) analyst Dan Levy said that Tesla checks a number of boxes for investors and noted that the key takeaway from the quarter was the company's promise of comfortably delivering over 500,000 units this year.

Tesla, which was infamous for not keeping up with production targets, has been looking to broaden its manufacturing capability with its new $2 billion factory in Shanghai.

The electric vehicle maker said its new Shanghai factory, which started delivering Model 3 sedans a month ago, was running as expected and that it would increase production of the mass-market cars because of strong demand in China.

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