New York, Jan 4 (AFP/APP): After shares rocketed higher in 2020 on surging auto deliveries, Tesla enters 2021 with plenty of momentum even as its vision of taking electric cars mainstream remains a ways off.
The auto industry disruptor led by Elon Musk wowed Wall Street yet again over the weekend, reporting annual car deliveries of 499,550, just shy of its 2020 target of half a million, but well above analyst estimates. The disclosure capped a year that saw Tesla report a series of profitable quarters and join the S&P 500, establishing the company as one of the world’s most valuable companies and elevating Musk to the second-wealthiest person behind Amazon CEO Jeff Bezos.
Shares were higher again Monday, up 3.9 percent in afternoon trading at $733.00 after the stock engineered a more than 700 percent ascendance in 2020. The company’s market capitalization of around $700 billion means it is worth more than General Motors, Ford, Toyota, Honda, Fiat Chrysler and Volkswagen combined. Tesla watchers don’t think Musk will be able to match that kind of valuation surge in 2021, but expect continued progress as Tesla adds production capacity and pushes the envelope on new technologies, including autonomous autos.
“In 2020 Tesla had a really unprecedented streak of positive developments, positive news flow in the story,” CFRA Research analyst Garrett Nelson, who is bullish on Tesla, but has a hold on the stock and a 12-month target of $750 a share. “Now we’re getting to a point where it’s hard to identify what the next positive might be.”
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