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Tesla’s Q2 results beat street estimates as the stock surged a whopping 8% in the last trading session climbing all the way above $1200 levels. Tesla’s recent price surge has made it the most valuable global automobile toppling Toyota.
If there’s one company whose stock has seen a massive price despite the COVID-19 pandemic, it’s none but Elon Musk‘s automobile giant Tesla Inc (NASDAQ: TSLA). The electric-car-maker has stunned Wall Street investors with its massive price rally in the first half of 2020.
With this week’s price surge, Tesla has toppled Toyota Motor Company (NYSE: TM) to become the most-valued automobile company in the world. Yesterday, Tesla stock jumped another 8% to close above $1200 levels. On closing, the TSLA stock was trading at $1208 with a market cap of $224 billion.
Today’s price rally came after Tesla announced on Thursday that it delivered 90,650 vehicles in Q2 2020. This was fairly above the analysts’ estimate and prediction of 72,000 Tesla deliveries. Well, Tesla’s stunning performance comes despite the fact that it had to shut down its Fremont factory in May amid the U.S. lockdown, for a few days.
Tesla started 2020 on a pretty good note with its stock surging 100% in just the first 45 days of the year. Just when the Dow Jones clocked 30,000 levels, TSLA stock was past $900 levels. However, during the massive market correction in March, the Tesla stock dropped 50% to the tank below $400 wiping all its early year’s gains.
But Tesla being Tesla, it took no time for the stock to be investors’ top choice on Wall Street! From its March lows, Tesla stock has surged more than 200% and nearly 189% year-to-date. Investors are now seeing Tesla as a formidable player for the next decade, and as a long-term investment.
Analysts Expect Tesla Stock to Touch $2000
Wedbush analyst Dan Ives said that there’s solid demand for Tesla 3 from Chinese consumers. He said that China is a “ray of shining light for Tesla in a dark global macro” environment. Earlier this year in January 2020, Elon Musk inaugurated the Tesla gigafactory in China, its biggest single-place manufacturing unit.
Ives also added that demand for Tesla’s newer Model Y SUV is surging in China. Thus, for these reasons he predicts another $400 in the Tesla stock price due to strong demand in China. In fact, Ives is so bullish on Tesla that he thinks the Tesla stock can go up to $2000 over the next 12 months. Well, this could bring Tesla valuations to a massive $370 billion. Speaking on the recent quarterly results, Ives said:
“In our opinion, a 90,000 delivery number in this COVID lockdown environment is a jaw-dropper and the bulls will run with this as a potential paradigm changer moving ahead”.
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