Tesla lived up to the promise of CEO Elon Musk who had prophesied a profitable third quarter for the company. While the market was skeptical on the long term prospects of his words, Tesla wasted no time in surprising the Wall Street with a whooping 17% rise in its shares.
Shares of Tesla jumped by 3.5% today morning. Trading at $298 Million with market capitalization worth $53 Billion, Tesla beat General Motors with Its $51 Billion stock market value, dethroning it to become United States’ most valuable car company.
Tesla released its quarterly profit report this Wednesday, extracting this value mostly from improvements in operating efficiency and cost reductions on manufacturing and materials.
Tesla has had a magnificent run this year. Since January, its stock market value has mounted over 46% and is still ascending. Last week, it surpassed Ford in terms of market value and today it has finally become the most valued car making firm of United States.
The whooping rise in its value convinced at least eight brokerages to raise the price targets on the company. However, the company’s average Wall Street rating still stands on ‘hold’ with only 11 out of 34 analysts recommending investors to buy its stocks.
Bokerage Credit Suisse’s analyst said;
A strong step forward, yet Tesla will need to put together a string of similar data points to demonstrate the sustainability of results … and its track record has been spotty on this.
Tesla’s continued failures to meet its financial and production targets has kept the investors dubious on its profit stands for long. The current share price is still down by a third of the $390 peak which it touched in 2018.