Tesla Shares Zoom Past $700 on Analyst Upgrades, Positive Battery Production News

Panasonic reported increased production and efficiency in its Tesla battery unit, helping to drive shares of the carmaker to a new intraday high on Monday.
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Tesla  (TSLA) - Get Report stock climbed to a new high on Monday following a flurry of positive reports. 

Shares of the automaker rose 19.9% to $780.00 after news of increased battery output at one of Tesla's key suppliers and a pair of analyst upgrades pushed it to a new high that valued the company at over $140 billion. The jump on Monday was the stock's largest since May 9, 2013, when it rose 24.4% after reporting its first profitable quarter.

Earlier on Monday, Panasonic Corp., which produces batteries for Tesla at their jointly operated Nevada facility, said that increased production in its Tesla unit helped push the battery maker towards a profit last quarter. 

Panasonic's CFO, Hirokazu Umeda, told shareholders that higher production volume of the Tesla batteries "is helping to push down materials costs and erase losses." 

Meanwhile, Argus analyst Bill Selesky raised the firm's target price for Tesla to $808 from $556 based on Tesla's "dominant position in the electric vehicle industry" and expectation that the company will continue to "improve performance in 2020 and beyond."

Ark Invest, a fervent Tesla bull, also raised its price target for 2024 to an eye-watering $7,000 based on optimism about its gross margins and capital efficiency. Ark analyst Catherine Wood told Bloomberg over the weekend that she felt the stock was still "incredibly undervalued."

Finally, Tesla's largest institutional shareholder, Baillie Gifford & Co., also boosted its stake in Tesla from 7.46% to 7.67%,  according to an SEC filing. 

For the company's fourth quarter, which it reported on Jan. 29, Tesla posted better-than-expected quarterly earnings of $2.14 per share and told investors it would "comfortably exceed" 500,000 vehicle deliveries, a number that was also ahead of estimates. Year to date, shares of Tesla are up almost 80%, including Monday's gain.