The latest 10 percent jump in the share price means that its value has nearly trebled since May 2019 – with the shares leaping from a low of $176.99 to close on Monday in New York at $524.86.
That puts a market value on Tesla of $94 billion – more than the combined value of US legacy carmakers General Motors and Ford combined.
According to the stock analysis company Shortsight, the latest jump in the share price has seen short-sellers lose another $1.25 billion. Tesla had been the most “shorted” stock on the market – but much of the latest price rise is credited to short-sellers covering their positions after realising their strategy was not the best idea.
And the share price and market value of Tesla is likely to go even higher. Colin Rusch, an analyst for US investment firm Oppenheimer has reportedly raised his price target to $612 a share, becoming the biggest Tesla bull on Wall Street.
Rusch told CNBC that Tesla now represents a major risk to legacy carmakers – a conclusion that others may have come to previously, but which is confirmed by the current valuations and market views.
“Tesla has really proven to be an existential threat for those companies,” Rusch said in an explanation of his price target hike to CNBC’s “Power Lunch.”
Like another investment firm, Piper Sandler, which last Thursday raised its price target for Tesla from $423 to $553, Rusch cites Tesla’s move into China and the rapid 10-month build of its Shanghai Gigafactory 3 as a specific reason behind his price hike.
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