With Tesla (TSLA) stock price jumping by 12.58% on Monday, the shares are still 16.5% below the September 1 record high.
The shares of electric auto giant Tesla Inc (NASDAQ: TSLA) saw a massive surge of 12.58% on Monday as the tech stocks on Wall Street experienced a rebound. Weighing in on Tesla (TSLA) stock 12.58% surge, Goldman Sachs Group Inc (NYSE: GS) said in a note to clients that the shares of Tesla (TSLA) are seeing the boost because auto demands in China are picking up.
“Tesla global weekly app downloads have recently been tracking up on a year-over-year basis, with the most recent full week of global data up about 20% YoY,” the firm said in a note to clients Monday, while adding that the company is generally known to have “much stronger deliveries in the last month of each quarter.”
With Tesla (TSLA) stock jumping by 12.58% on Monday, the shares are still 16.5% below the September 1 record high. These slumps from the September 1 high came after the stock was boycotted by the S&P 500 index it was expected to be listed on. Undoubtedly, the stock has seen some glorious days in 2020 rising by about 400% forcing it to initiate a 5-for-1 stock split that came into effect on August 31. Tesla (TSLA) shares jumped by about 11% following the split and projections abound for more growth considering the company’s ongoing projects.
With the TSLA 12.58% surge, Goldman Sachs still maintained its price target for the stock at $295. On Monday, Apple Inc (NASDAQ: AAPL), the other company that also recently enacted a 4-for-1 stock split saw a 3% surge while the Nasdaq Composite jumped by 1.87%.
Tesla (TSLA) Stock Surge Shows Resilience, Compliments Gigafactory Upbeat
With the latest surge in Tesla (TSLA) shares, the shares have shown great resilience amid pressures shares have been experiencing in recent times. Shares have come under pressure after the company announced it was raising $5 billion through a new stock offering, and after the company’s largest outside shareholder trimmed its position.
The share uptick also shows a complementary position with respect to the strides from Tesla’s Gigafactories. Coinspeaker earlier reported that the auto giant Tesla (TSLA) is set to start shipping out its Model 3S cars made in its Shanghai Gigafactory. Europe and Asia have been tipped to be the major markets for Shanghai-made cars as the company looks to cut down on shipping costs.
Besides the readiness of the Shanghai Gigafactory, Tesla (TSLA) is also advancing its bid to start production in its Berlin Gigafactory by 2021. The construction of the Berlin car plant is already on track as Germany’s economy minister Peter Altmaier has pledged full support to the Elon Musk-led company. The Berlin Gigafactory is billed to roll out about 500,000 cars per year when production commences.
These advances can potentially reposition the company’s shares to see more gains as the weeks roll by.