Tesla to Gain $50 Billion in Market Value Following Record Delivery News
Tesla was set to gain around $50 billion in market value after it posted record deliveries on strong demand in China, outweighing the impact of a global chip shortage and giving their stock a nearly 8% boost.
The company commented that it was encouraged by the strong reception of its Model Y crossover in China and was quickly progressing to full production capacity on Friday.
Indeed, analysts agree that despite the global chip shortage, supply chain issues and rising competition, Tesla still managed to produce roughly the same amount of vehicles in Q1 as in Q4, settling at 184,800 vehicles - above expectations of 177,822.
"Tesla is executing impeccably. I am not surprised by the strong deliveries”, Roth Capital Partners analyst - Craig Irwin commented, further adding that the stock is "egregiously overvalued."
Tesla's shares were at $713 before the bell, while other EV maker shares were seen up around 3%.
"The (EV) sector looks primed to resume its march higher, considering the surging demand for EVs in China, Europe, and the U.S. Tesla's delivery numbers could be the spark needed to jumpstart the next rally”, Jesse Cohen, the senior analyst at Investing.com comments.
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