(Reuters) – Shares of Tesla Inc opened at a record high on Thursday as Wall Street analysts were encouraged by the company’s better-than-expected quarterly results and delivery targets for the year.
Tesla shares, which have been on a tear for the last six months, shot to $643.80 in early trading.
The company’s market value of $116 billion eclipses that of Ford Motor Co and General Motors Co combined and is only second to Japan’s Toyota Motor Corp.
At least nine analysts raised their price targets on the stock, with Canaccord Genuity’s analyst Jed Dorsheimer raising his price target to $750 from $515.
The higher delivery forecast suggests Tesla is looking at a steadier chapter after years of steep losses, production troubles and clashes between Chief Executive Officer Elon Musk and U.S. regulators.
Credit Suisse analyst Dan Levy said that Tesla checks a number of boxes for investors and noted that the key takeaway from the quarter was the company’s promise of comfortably delivering over 500,000 units this year.
Tesla, which was infamous for not keeping up with production targets, has been looking to broaden its manufacturing capability with its new $2 billion factory in Shanghai.
The electric vehicle maker said its new Shanghai factory, which started delivering Model 3 sedans a month ago, was running as expected and that it would increase production of the mass-market cars because of strong demand in China.
(Reporting by Aakash Jagadeesh Babu in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D’Silva)