Tesla Hits Over $700 a Share After Analyst Said This

2020 is definitely looking like Tesla’s year as the electric vehicle maker’s shares have been surging since the year began.

The stock hit $700 a share for the first time this week after receiving a bullish call from Argus Research analyst Bill Selesky.

Tesla shares were up 11.5% on Monday after the analyst raised its price target from $556 to $808. The firm also raised its earnings per share estimate to $8.01 from $5.96 and expects that to double by 2021.

Citing Tesla’s strong fourth-quarter financials from last week, the reearch note read, “Our positive view assumes continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3, which accounted for more than 80% of 4Q19 production.”

“Despite past production delays, parts shortages, labor cost overruns and other difficulties, we expect Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and beyond,” the note added.

Tesla said last week that its vehicle deliveries should “comfortably exceed 500,000 units” for 2020. The company already reported deliveries of 112,000 vehicles globally during its fourth quarter. Wall Street had expected 106,000.

The company had reported earnings on Jan 29th and reported a diluted EPS of $0.58. This was under consensus expectations but when $1.56 a share in non-cash expenses from stock-based compensation is removed, the company reported an adjusted EPS of $2.14, which was higher than expected.

Tesla hit an all-time high of $735.18 on Monday and the stock is now up 70% year to date.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.