Tesla stock soars, hitting $700 per share for the first time

Shares of Tesla soared as much as 12% on Monday after Argus Research raised its price target to $808 from $556.

The firm’s analysts cited Tesla’s strong fourth-quarter financials, which exceeded Wall Street’s expectations last week. It also raised its earnings per share estimate to $8.01 from $5.96 and expects that to double by 2021.

Shares were trading just over $717 after the opening bell and hit an all-time high of $735.18. The stock is up 70% year to date. Tesla’s market cap was about $130 billion around noon Monday.

“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,” according to the research note.

“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,” it added.

Tesla said Wednesday that its vehicle deliveries should “comfortably exceed 500,000 units” for 2020. It had already reported deliveries of 112,000 vehicles globally during its fourth quarter. The delivery, a record for Tesla, exceeded Wall Street’s expected 106,000.

Tesla said on Jan. 3 it delivered 92,550 Model 3 cars and 19,450 Model S and X vehicles during the fourth quarter. It was expected to deliver 87,900 Model 3, 9,800 Model S and 9,300 Model X vehicles.

Argus Research analyst Bill Selesky had already raised his price target on the company once this year, which made him the biggest bull among analysts at the time. On Jan. 7, Selesky raised his 12-month target to $556 from $396, citing strong fourth quarter deliveries.