Tesla Stock Price Hits $949.92 on Better Than Expected Vehicle Sales

Tesla Stock Price Breaks Record on Monday

Tesla, the world’s largest manufacturer of electric vehicles, hits a record milestone on Monday when its shares traded at $949.92 a unit.

Tesla stock price opened the day at $919 per share but surged after Chinese data showed Tesla sold 11,095 of its made-in Shanghai Model 3 electric sedans to Chinese customers in the month of May.

According to the China Passenger Car Association, Tesla vehicle sales rose by 205 percent in May, up from the decline suffered in April during the peak of COVID-19 pandemic. The company sold about 4,000 vehicles in China in April.

Commenting on the strong May performance, Wedbush Securities’ Dan Ives, a Tesla bull, made a case for $1,350 target.

“We believe that the China growth story is worth $300 per share to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months in a more normalized backdrop. We maintain our neutral rating and $800 price target with our bull case target at $1,350”

While JL Warren Capital, a China-focused equity research company based in New York, attributed the positive performance of made in China Model 3 vehicles to discounts and subsidies offered by Tesla to Chinese customers in May.

“The sharp drop in the number of LR [long-range] orders in May is the result of a price cut of ~11% starting on May 1st for the M3 SR [short-range]. Due to Tesla’s whimsical pricing changes, Chinese consumers are delaying purchases hoping for further price cuts for LR [long-range] after July as the model will no longer eligible for a government subsidy.”