Tesla just made history, with a little help from its shareholders, as the electric carmaker’s stock price topped $US500 a share on Wall Street for the first time.
Tesla shares jumped 9.8 per cent to close at $US524.86 as investors continued to throw more weight behind the company and its prospects for future growth and success.
Oppenheimer analyst Colin Rusch added to the enthusiasm as he raised his price target on the stock to $US612 from $US385, saying that after many initial stumbles, the company had finally “reached critical scale sufficient to support sustainable positive free cash flow.”
Rusch said Tesla’s high risk tolerance, its ability to learn from past errors and bigger ambition compared to peers pose an “existential threat” to other transportation companies that are unable or unwilling to innovate at a faster pace. He maintained his buy-equivalent rating on the stock.
Rusch’s move marked the latest in a string of similar boosts by Tesla analysts over the past week as shares of the company continued to rise higher after fourth-quarter vehicle deliveries surpassed expectations. Other positive developments boosting the stock include a Chinese official saying the government won’t significantly scale back electric-vehicle subsidies this year.
Tesla shares have been on a strong upward trend after the company reported a surprise profit for the third quarter, which was followed by some improvement in overall analyst sentiment on the company, with the final push coming from the strong delivery numbers early this month.
The company’s share price reached the $US400 mark for the first time just on December 20, and its shares have climbed 51 per cent over the last year.
Tesla CEO Elon Musk also did his part to stoke excitement for his company when he said that Teslas would soon be able to “talk” to pedestrians. Musk did this via his favourite method of telling the public about what’s going on with Tesla, a Twitter tweet.
To prove his point, Musk included a video of two people driving a Tesla Model 3, with the car’s speaker playing the words, “Well don’t just stand there staring. Hop in.”
Musk didn’t say if Tesla would include the new speaking feature in its next software update, and the company didn’t immediately return a request for comment on the matter. However, the company has already begun adding external speakers to its cars in order to comply with federal safety regulations set to take effect later this year.
Source: Thanks smh.com