The company hit a new 52-week high and finally broke past the $100 billion market cap.
Things just keep looking up for Tesla. After a rocky 2019, the company has taken off like a rocket in the New Year. Its shares are currently up 96% from a year earlier, and this week, the company hit a new 52-week high.
On Wednesday, Tesla reached $594.50 per share, finally breaking past the $100 billion market cap. This is good news both for the company and its founder Elon Musk. Musk stands to earn a nice payout if the stock is able to maintain this market capitalization.
Why Tesla stock keeps going up
Tesla’s shares have been on a roll and have risen sharply since early October. The most recent spike came on the heels of Wedbush analyst Dan Ives’ decision to upgrade the stock.
Ives maintained his hold rating on the stock but increased his price target to $550 per share. Previously, Ives held a $370 price target on Tesla.
In a note to clients, Ives stated that he’s confident the company won’t disappoint investors at its earnings report next week. He believes the company’s delivery guidance will remain solid thanks to strong demand in Europe and China.
The positive momentum surrounding the company could be very good for its CEO and founder Elon Musk. According to Tesla’s board and shareholders, Musk stands to earn up to $346 million in options it the company’s market capitalization can stay at over $100 billion.
Tesla always seems to bring out the bulls and the bears in full force. Of the 26 analysts currently reviewing the stock, Wall Street is split when it comes to the company. Seven recommend the company as a buy, seven recommend holding, and 12 recommend selling.
Tesla does seem to have a lot going for it right now. The company opened its Shanghai plant ahead of schedule and production seems to be going well. Not to mention, the company’s deliveries are up 50% year over year.
It remains to be seen whether the company can maintain this momentum going forward. Ultimately, we’ll know more once the company releases its earnings on Jan. 29.