Tesla, the brainchild of Elon Musk, has once again recorded profits for the fifth quarter on the trot. It’s such a stellar performance that the analysts are astonished, by the company’s record-breaking turnovers. Tesla’s current value stands at $594 billion. It has now become of the S&P 500 companies, and Musk has become the richest man in the world.
The share price of the company is increasing and a Baird analyst has predicted that the price target for the company will increase from $488 to $728 per share. He also stated that he has given the stock an outperform rating, because of the company’s recent launch of factories in Berlin and Austin. The operations in Shanghai have also started, and the company has lived up to its promise of selling 500k cars.
According to an analyst from Wedbush Securities, Tesla’s stocks will continue to rise, provided the Biden Administration facilitates the economic revival of the industries related to the manufacturing sector. President Joe Biden has claimed that he intends to work towards the exploration and utilization of potential renewable and clean energy sources.
As reported by a FactSet survey, analysts have predicted that Tesla will have earnings amounting to $1 billion on sales of $10.5 billion. In the previous quarter, the sales amounted to $7.4 billion and the earnings stood at $143 million.
The analyst from Wedbush Securities has made predictions with the price target at $1250. Moreover, he has also predicted that the one-year price target will increase from $751 to $950. He believes that Tesla will become even more profitable because of the surge in demand for EVs.
He has also predicted that if the demand for EVs continues to grow, Tesla will surpass the 1 million car delivery target, and it can also achieve 5 million deliveries every year in the forthcoming 10-year period.
House Speaker Nancy Pelosi has also recently placed bets on Tesla stock amounting to $1 million. According to a government filing of the financial disclosure form, Pelosi is reported to have bought 25 call options on the company’s stock. The strike price amounts to $500. She, along with her husband, is reported to have made transactions worth $500,001 to $1 million in December.
After the company’s reported earnings in October, Tesla’s stock has surged by more than 100%.