Tesla (TSLA) Stock Hits $780 Rising More Than 80% Since the Start of the Year

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by Bhushan Akolkar · 3 min read
Tesla (TSLA) Stock Hits $780 Rising More Than 80% Since the Start of the Year
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Elon Musk’s Tesla has shut the critics with its overwhelming performance in Q4 2019. Tesla (TSLA) stock has stormed Wall Street with its price surging a whopping over 80% since the beginning of 2020.

Short-sellers are burning their hands on Tesla as the electric car maker released its strong Q4 2019 numbers last week. In less than a week, the Tesla stock has added over $200 to its price making it the first American automobile company to hit $100-billion valuations.

On Monday, February 3rd, the Tesla stock surged 20% to $780 levels taking the company’s valuations at $140 billion. Indeed, with this move, Tesla has taken Wall Street and global investors by surprise. Monday’s stock price gain was the biggest one-day surge of Tesla in the last six years.

Since the beginning of 2020, the Tesla stock price is up 85% in one-of-its-kind performance. Tesla’s stock performance has forced analysts to revise the calculation and set up new targets ahead.

Analysts Go Bullish on Tesla for Next Five Years

From darlings of the critics to darlings of investors, Elon Musk and Tesla have managed to successfully turn the tables in their favor. Despite this massive price surge, analysts remain positive for the stock to touch higher levels ahead.

As reported by CNBC, Argus Research said that it expects Tesla to continue with its strong performance in 2020. The research note reads:

“Our positive view assumes continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3, which accounted for more than 80% of 4Q19 production. Despite past production delays, parts shortages, labor cost overruns and other difficulties, we expect Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and beyond”.

Tesla is also confident that it will easily exceed the delivery of 500,000 cars by the end this year, 2020. Tesla’s expansion to China with its Gigafactory facility in Shanghai is the talk of the town these days. Tesla knows that China is the world’s largest automotive market and having locally produced cars will them in significantly cutting down ownership costs.

Wedbush analyst Dan Ives, said that the Tesla stock can easily surge to $1000 levels from here. He said:

“Last week’s earnings and guidance completed ‘comeback story for the history books’ from the dark days seen last April. Furthermore, he sees a “clear momentum around global EV demand inflection heading into 2020 and beyond, with Tesla leading the charge”.

Tesla’s Long Term Predictions and Bitcoin Comparison

On the other hand, investment funds are also making long-term predictions for Tesla. ARK Investments expects Tesla to touch $7000 levels in the next five years by 2024 to hit $1 trillion valuations. Well, if Tesla continues its performance this way, it can even beat the likes of Volkswagen in a few years from now.

Moreover, crypto bull and Galaxy Digital founder Mike Novogratz showed an interesting pice comparison between Tesla price curve and Bitcoin price curve in 2017.

However, we all remember what has happened to Bitcoin later. So, now we need just to wait and see whether or not history will repeat.

Market News, News, Stocks, Wall Street
Bhushan Akolkar
Author Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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