Market value exceeds $ 140 billion! Tesla shares rose nearly 20% in a single day, a record high

Argus Research raised its target price from $ 556 to $ 808, saying that Tesla’s strong fourth-quarter results were the main reason for its upward adjustment.

Tesla’s share price closed up nearly 20% on Monday, hitting a record high, with a market value of more than $ 140 billion, after Argus Research raised its target price from $ 556 to $ 808.

As of the close, Tesla’s stock price rose 19.89% to a record high of $ 780, with a market value of $ 140.6 billion. Since this year, Tesla’s stock price has risen by 86.46%.

Analysts at Argus Research said Tesla’s strong fourth-quarter results were the main reason for its target price increase. Last week, Tesla reported better-than-expected fourth-quarter earnings. The company also raised Tesla’s EPS estimates from $ 5.96 to $ 8.01 and expects to double by 2021.

“Our optimistic expectation is that the revenue of the old Model S and Model X will continue to grow, and the demand for the new model Model 3 will also be strong, which accounts for more than 80% of the fourth quarter of 2019.” The research institute said .

Argus Research also said that despite past difficulties such as production delays, parts shortages, and labor cost overruns, we expect Tesla to benefit from its dominance in the electric vehicle industry and improve performance in 2020 and beyond.

According to data provided by financial analysis company S3 Partners, since the beginning of this year, investors who have shorted Tesla (NASDAQ: TSLA) stock have lost more than $ 8 billion, of which only the company’s soaring stock price on Monday has cost it Nearly $ 2.5 billion.

According to the financial report, Tesla’s total revenue in the fourth quarter was US $ 7,384 million, an increase of 2% compared to US $ 7,226 million in the same period last year. Compared with the decline of 25%, both exceeded analyst expectations.

Tesla also said that due to the government’s request for the plant to stop production, we expect the production progress of the Model 3 made in Shanghai to be delayed by 1 to 1.5 weeks. This may slightly affect the profitability of the quarter, but it is limited because Model3’s profit contribution is still in its early stages.

Tesla said on January 3 that the company delivered 92,550 Model 3 and 19,450 Model S and X vehicles in the fourth quarter. In comparison, the market expects Tesla to deliver 87,900 Model 3 and 9,300 Model X.

This year, Argus Research has raised Tesla’s target price once, thus making it Tesla’s biggest bull. On January 7, Argus Research raised Tesla’s 12-month target price from $ 396 to $ 556.

Related posts

If you thought Netflix was richer thanks to a pandemic, you’re wrong

Mzee Kobe

Apple received a billion-dollar fine for manipulating the French market

Mzee Kobe

Apple may acquire Disney

Mzee Kobe

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More