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Tesla Stock Jumps As Uber Partners With Hertz on Model 3 Rentals; Goldman Boosts Price Target

A price target boost from Goldman Sachs, as well as an Uber deal to allow drivers to rent Model 3s from Hertz, has Tesla stock back on record watch Wednesday.

Tesla  (TSLA) - Get Tesla Inc Report shares extended gains Wednesday after riding-hailing group Uber Technologies  (UBER) - Get Uber Technologies, Inc. Report said it would partner with Hertz Global  (HTZZ) - Get HERTZ GLOBAL HOLDINGS INC Report to offer 50,000 clean-energy cars to its drivers.

Uber said it would allow drivers to rent a Model 3 from Hertz -- which placed a $4.4 billion order with Tesla for 100,000 vehicles earlier this week -- for around $334 a week. The program will start in Los Angeles, San Francisco and San Diego and Washington, D.C., next month, before expanding nationwide in 2022.

Tesla shares were also given a boost by a price target increase from Goldman Sachs, where analyst Mark Delaney pegged Tesla at $1,125 per share citing the growth and margin benefit from the group's Hertz order.

Tesla shares were marked 4.65% higher in early trading Wednesday to change hands at $1,065.31 each. Uber shares fell 1.9% to $45.22 each.

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Earlier this week, Tesla joined an elite list of only five other American companies that have passed the $1 trillion market cap threshold after its stock raced past $1,000 a share following the 100,000 Hertz order, an upgrade from Morgan Stanley and record third quarter earnings. 

Tesla posted net income of just over $2 billion for the three months ending in September, alongside the strongest profit margins in the group's history -- 30.5% -- and record sales of $13.7 billion. The blowout figures followed another all-time high in third quarter deliveries, which rose 73.2% from last year to 241,300 units.

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Non-GAAP earnings were pegged at $1.86 per share, up 135% from the same period last year and well ahead of the Street consensus forecast of $1.59 per share.