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On Monday, TSLA stock soared 12% following a huge order from car rental company Hertz Holdings. Analysts have further increased the price targets for Tesla stock.
On Monday, October 25, Tesla Inc (NASDAQ: TSLA) stock rocked Wall Street delivering 12% gains in a single day. As a result, the Tesla stock price shot past $1,000 for the first time taking the company valuation soaring past $1 trillion.
Tesla took nearly 11 years to attain this milestone after its public listing. The recent rally in the TSLA stock comes as car-rental company Hertz Global Holdings orders 100,000 Teslas. The deliveries of the same shall happen by the end of 2022. The total order value has been a staggering $4.2 billion that pushed TSLA stock soaring 12% on Monday.
Moreover, the Tesla Model 3 models will be available at Hertz’s rental inventory as early as next month. This will be for the US markets and some cities of Europe. Interestingly, this recent order from Hertz comes in just months after the company filed for bankruptcy. Post the Tesla deal, the EV cars will contribute 20% of the company’s total card deals.
Hertz said that its goal was to “offer the largest EV rental fleet in North America and one of the largest in the world”. Besides, the car rental company is also working on setting up the electric vehicle infrastructure. In a note on Monday morning, Wedbush analyst Dan Ives wrote:
“While Hertz is in the early stages of electrifying its rental car fleet, Tesla getting an order of this magnitude highlights the broader EV adoption underway in our opinion as part of this oncoming green tidal wave now hitting the U.S. While China and Europe have been ahead of the U.S., it appears demand is accelerating for EVs domestically with Tesla leading the charge and OEMs including Lucid Motors, GM, Ford, Faraday Future, and many others chasing after this $5 trillion market opportunity over the next decade.”
Morgan Stanley Raises Target for Tesla Stock amid Increasing Valuation
Another major reason for the TSLA price surge was that banking giant Morgan Stanley raised the targets for the TSLA stock price. In the latest research note, Morgan Stanley analyst Adam Jonas noted that the firm has raised the TSLA price target to $1200.
Besides, the Tesla Model 3 has emerged as the top-selling European car last month. Besides, it also became the vehicle to do so on a monthly basis, as per the report by JATO dynamics. The Tesla Model 3 sales jumped 58% over the last year to reach 25,000 in Europe alone.
Furthermore, the electric carmaker reported stellar numbers last week for the third quarter. During Q3 2021, Tesla reported a net income of $1.62 billion a fivefold increase from the $331 million during the same period last year.
The record-high profits came amid record sales despite the issue of supply chain constraints and global chip shortages. Interestingly, the company clocked these stellar revenue numbers even with a vast majority of sales coming from cheaper vehicles like Model 3 and Model Y.