Electric vehicle stocks are climbing consistently, with Tesla hitting a market cap over $400 billion, which also increased Elon Musk’s net worth.
Electric vehicle (EV) maker Tesla Inc (NASDAQ: TSLA) jumped over 6% on Wednesday, reaching a $401.2 billion market value. On the day, TSLA swung between 2,053.63 and 2,166.00 per share and closed at $2,153.17. With the price movements, Tesla has set a new intraday record of $2,166.
Back in June, a Barrons report revealed that some EV companies have been trading above analysts’ expectations. At that time, Tesla’s stock was almost 140% in its year-to-date performance. Now, TSLA has climbed 414.71% in 2020, pushing the market capitalization over $400 billion on Wednesday.
Tesla and Other Electric Vehicle Stocks Soar
However, Tesla’s market value has dropped and is presently at $377.07 billion. At the moment, Tesla is more valuable than Walmart Inc., making it the 9th most valuable company in America.
Over the past months, EV stocks have been increasing as the likes of Nio and Tesla have been standing out in the industry. A recent Barron’s report revealed that EV stocks generally gained 6% on the same day Tesla spiked. This surge had Chinese EV maker Li Auto (NASDAQ: LI) in the lead, with a 28% gain.
Recently, a Bloomberg report showed that Jefferies analyst, Philippe Houchois raised his price target for TSLA from $1,200 to $2,500. Considering Tesla’s plan to showcase its battery technology in September, the analyst believes the “Battery Day” will also push the company’s share price.
Tesla Plans “Battery Day”
Earlier this week, Tesla CEO Elon Musk said in a tweet that the mass production of batteries with higher energy density was within reach. The company is likely to show improvements in its battery technology at the event currently scheduled for the 22nd of September.
Houchois commented on the upcoming Battery Day:
“Nothing matters more on ‘Battery Day’ than understanding how the ‘million-mile’ batteries could profoundly change the auto business model.”
In addition, the Jefferies analyst said that TSLA’s rise will remain and even expand until traditional automakers “have viable electric vehicle businesses and can start off-loading ‘stranded’ assets and corresponding liabilities.”
Tesla’s Recent Growth
In the past year, Tesla has been growing significantly in production, sales and its stock price. As a result of these gains, several analysts have raised their TSLA price targets.
In June, Tesla stock jumped nearly 30%. Following this increase, JMP Securities analyst Joseph Osha increased his price target for TSLA from $1,050 to $1,500. The analyst also predicted that Tesla will hit $100 billion in annual sales in the next five years.
Similarly, other analysts have bullish predictions for TSLA. Analyst Dan Ives at Wedbush also raised his price target for Tesla’s shares from $1,800 to $1,900. Ives increased this target after Tesla’s stock added 8% on the 17th of August.
Following the 8% TSLA rise, Musk’s net worth gained $7.8 billion, making him the world’s fourth-richest person. At that time, the CEO’s estimated fortune was $84.8 billion.
For the past twelve months, Tesla’s stock has been rising. Currently trading at a premarket price of $2,168, TSLA is up 0.69% over its previous close of $2,153.17. The company also climbed 44.75% in the past month and over 165% in the last three months.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.