Tesla’s Valuation Increases by $40B+ in Biggest Day Ever

Rob Maurer

Tesla Adds $40B to Valuation in One Day

Tesla (TSLA) -Get Report shares on Monday increased by $163/share, the biggest dollar increase in the company's history. With another $60 added in after-hours trading, TSLA's market cap has risen by more than $40 billion in less than one day to a total valuation just above $265B. For more analysis on the share price moves, please see the included video.

Analysts Raise TSLA Price Targets

Wedbush analyst Dan Ives raised his bull case TSLA price target to $2,000 from $1,500 after Tesla's Q2 delivery numbers were released late last week. Ives called Tesla's 90k delivery number in the current macro-environment a “jaw dropper” and cited China as the “star of the show”. Wedbush also increased their base case TSLA price target from $1,000 to $1,250.

Before trading on Monday, JMP Securities analyst Joseph Osha increased his TSLA price target from $1,050 to $1,500 per share. Osha's street-high price target currently stands as the only TSLA price target above Tesla's share price. Osha was complimentary of Tesla's Q2 deliveries, which significantly exceeded his team's forecast of 73,800 vehicles.

"Our target is now based on our belief that TSLA is positioned to become a $100bn company with 20% EBITDA margins by 2025, with that outcome discounted back to the present." - JMP Securities

In two smaller moves, Deutsche Bank analyst Emmanuel Rosner and JPMorgan analyst Ryan Brinkman have both increased their TSLA price targets as well. Deutsche Bank has increased their price target from $900/share to $1,000/share, while JPMorgan raised from $275/share to $295/share. JPMorgan's price target is determined by discounting a 2021 earnings forecast, a very short horizon for an investment in a company like Tesla.

LG Chem Reportedly Expanding Battery Production for Tesla

South Korean news outlet News1 has reported that LG Chem plans to convert a portion of a cylindrical battery production line in South Korea to better accommodate growing demand from Tesla for battery cells to be used in Giga Shanghai.

“Because LG Chem's battery production in China is short of demand, it seems that it will increase production in Korea and supply it to Tesla.” - Translated quote from industry sources reported by News1


Writing assistance by Pranshu Agarwal. Select video stock footage provided by Videvo, downloaded from www.videvo.net. Rob Maurer is long Tesla stock and derivatives.