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Tesla Shares Leap After Record Q3 Deliveries, Wedbush $1000 Price Target

Tesla shares are getting a lift from a host of Wall Street price target boosts, including a $1,000 forecast from Wedbush, following its record Q3 deliveries.

Tesla  (TSLA) - Get Tesla Inc Report shares jumped higher Monday after the carmaker posted record third quarter deliveries that both topped Wall Street forecasts and defied investor concerns linked to factory shutdowns in China and a global shortage in semiconductors.

The stock also got a boost from news that the National Highway Traffic Safety Administration has declined to open a formal investigation into Tesla vehicle fires following a nation wide petition first started in 2019.

In the midst of a call from founder and CEO Elon Musk to "go hardcore" over the final weeks of the quarter, Tesla delivered 241300 new cars over the three months ended in October, the company said in a Saturday statement, up 73.2% from last year and nearly 20% higher than the 201,250 reached in the second quarter. 

The third quarter total was comprised of 323,025 Model 3 and Model Y sedans, Tesla said, and 9,275 of its higher-priced Model S and Model X.  Analysts were looking for an overall total of around 230,000.

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“With the chip shortage a major overhang on the auto space and logistical issues globally these delivery numbers were “eye popping” and speaks to an EV demand trajectory that looks quite robust for Tesla heading into 4Q and 2022,” said Wedbush analyst Dan Ives, a longtime Tesla bull who boosted his price target on the clean-energy carmaker to $1,000 in the wake of Saturday's delivery tally.

Tesla shares were marked 2.3% higher in early trading Monday to change hands at $794.30 each. 

Musk said last month that Tesla is "operating under extreme supply chain limitations regarding certain 'standard' automotive chips", and told investors in July that it could impact production rates over the second half of the year. 

Tesla acknowledged "supply chain and logistics challenges" in its third quarter delivery statement, and thanked customers "for their patience".

Short interest in Tesla, meanwhile, remains elevated ahead of its third quarter earnings on October 20.

S3 Partners, which calculates the volume of bets against the market's most-active stocks, pegs short interest in Tesla at around $20.45 billion, or 3.4% of the outstanding float.