Tesla’s stock is currently up more than 190% from a year earlier.
Tesla’s shares have been taking off since the start of 2020 and have risen an incredible 119% year to date. And the company did it again this week as its stock rose another 20% on Monday and hit an all-time high.
And then, instead of leveling off, the shares jumped an additional 14% on Tuesday. For the first time ever,Tesla’s stock is trading above $900 per share. In comparison, the average price target for the stock is $496.15.
So what’s going on with Tesla? And will the shares continue to take off in the coming months?
Why did Tesla’s stock jump?
Things have been going pretty well for Tesla over the last couple of months. The company opened its Shanghai plant quicker than initially expected. And its delivery numbers have been exceeding Wall Street’s expectations.
And just last week, the company delivered a solid fourth-quarter earnings report. It was the second profitable earnings report Tesla has delivered, and the company was optimistic about its guidance going forward.
But Tesla’s stock really took off after Argus Research upped its price target on Tesla. Previously, the company had a price target of $556 per share, but on Monday, the company increased it to $808 per share.
The firm said cited Tesla’s fourth-quarter financials as the reason why. And then ARK Investment Management gave the stock an additional boost. The company said it believes the stock could be worth $7,000 per share by 2024.
What does the future hold for Tesla?
This surge is exciting for investors, but some analysts believe that the stock is a speculative bubble that’s about to burst at any moment. Chief market strategist Matt Maley stated, “This is taking Tesla well above a level that would be supported by its current fundamentals.”
And if there’s one thing that’s certain, it’s that Tesla is known for its ups and downs. So it’s likely only a matter of time before the inevitable drop is coming. The company is currently considered a moderate sell on Wall Street.