Stocks of Elon Musk’s tech and automotive company, Tesla, soared more than 19% on Monday after Argus Research analysts raised its price target from $556 to $808. The spike in Tesla’s stock prices is the biggest one-day gain for the company since May 2013.
The research firm attributes the rise in price target to Tesla’s strong fourth-quarter financial report, which exceeded Wall Street’s expectations last week. Furthermore, Argus Research also raised its earnings per share estimate to $8.01 from $5.96 and expects that to double by 2021.
“Our positive view assumes continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3, which accounted for more than 80% of 4Q19 production,” according to the research note.
“Despite past production delays, parts shortages, labor cost overruns, and other difficulties, we expect Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and beyond,” it added.
After the opening bell on Monday, Tesla’s stocks are trading $717 and eventually hit an all-time high of $786.14. The stock is up more than 85% year to date, pushing the company’s market cap to stand at just over $140 billion.
