By
Bena Ilyas
April 23rd, 2024
Electric-car making giant Tesla attained a new milestone on Tuesday as its valuations crossed $100 billion in extended trading sessions. Wall Street is quite positive on the company performance and expects the stock to hit $800 this year.
Tesla stock made its new all-time high thus striking $100 billion valuations for the company in extended trading on Tuesday, January 21. Over the last three months, Tesla stock has been on a massive breakout doubling its value.
The Tesla stock has climbed all the way from below $250 levels to now just touching $550 levels. This stock performance itself shows that there has been growing confidence among investors for the future of Tesla. With this milestone, Tesla also becomes the first U.S. car company to cross $100 billion valuations.
During the end of December 2019, when Tesla stock climbed above $420, the company chief-executive Elon Musk tweeted of making the electric-car company private. However, Musk spoke about his plans already earlier in August 2018. At that time, the Tesla stock was trading around$330 levels.
Elon Musk stated that he had secured the funding and making the company private will put Tesla stock price at $420.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Musk’s revelation had got investors rushing to buy the Tesla but also had put the company CEO in a massive controversy. Musk’s statement made the regulators active putting the business tycoon under scrutiny.
Elon Musk to Take Hefty Paycheck in All-or-Nothing Bet
Elon Musk who his known for his ambitious targets agreed to an all-or-nothing pay package in early 2018. The proposal speaks Musk of saying in Tesla for the next decade and taking the company to a whopping $650 billion in valuations.
Musk is all set to receive the first tranches of this pay package if the Tesla stock stays above $100 billion for a sustained period. If the Tesla valuations remain above $100 billion for both – one month and six-month average – Musk will draw a paycheck of $367 million.
Needless to say, Musk has been at the heart of this transformation of the automobile industry which is now leaning towards electric cars. With Musk’s strong conviction, Tesla has also left behind giants like General Motors and Ford. In fact, Tesla is valued more than these two companies combined.
Wall Street continues to stay bullish on Tesla’s stock for this year. Analysts think that stong demand and management execution will catapult the company even higher.
On Tuesday, the electric-car maker raised its target to $800 per share. This is a whopping $575 surge from the current levels. If the Tesla stock touches $800 price point, it will easily cross $157 billion valuations.
Research analyst Pierre Ferragu said Tesla will roll out 2-3 million cars every year by 2025.