Tesla Inc. (TSLA) - Get Report shares topped the $1,400 mark Tuesday as investors continue to bet on the world's most valuable car company following last week's stronger-than-expected second quarter shipments.
Tesla's second quarter delivery tally of 90,650 units, a figure that topped Street forecasts, came amid a six week shutdown of the carmaker's Freemont, California production facility and a sharp 34% decline in overall U.S. auto sales.
China demand was also a factor, with Tesla's Shanghai factory now up-and-running, and expected to churn out 4,000 vehicles a week in the coming months, and emails from found and CEO Elon Musk himself suggest the data could provide yet another boost for the high-powered stock, which has gained more than 227% so far this year.
Tesla shares were marked 3.5% higher in early trading Tuesday to change hands at $1,419.00 each, a fresh all-time high that would extend the stock's six month gain past 200%.
Lats week, Tesla said Model 3 and Model Y deliveries hit 80,050 while Model S and Model X deliveries were pegged at 10,600, putting the second quarter total at 90,650 units. The company said earlier this year it would 'comfortably" deliver 500,000 vehicles by the end of 2020.
The delivery tally -- which was well ahead of the Street consensus forecast of 72,000 -- triggered a string of analyst upgrades, including price target increases from Deutsche Bank (to $1,000 from $900) and JPMorgan (to $295 from $275).
The stark contrast in assessments, however, underscores some concern on Wall Street for the 'lofty" valuation of Tesla stock, which values the Palo Alto, California-based carmaker at more than $260 billion, well ahead of Toyota's $206 billion and more than four times the combined market value of Ford Motor Co (F) - Get Report and General Motors (GM) - Get Report.
Analysts at Barclays, however, argued Tuesday that while the stock is 'fundamentally overvalued' as it nears $1,400 per share, it sees' "nothing to prevent the shares moving higher in the coming weeks" and urged "our bearish friends to remain in the shelter of their caves".