Tesla stock price rallied to almost $1000 as the chief executive officer Elon Musk says he plans to enhance semi-commercial truck production volume. The chief executive officer Elon Musk added that the company also plans to use its Gigafactory in Nevada for the production of the battery and powertrain.
Shares of Tesla soared 5.5% to an all-time high of $997 in pre-market trading. Its share has been following an upward momentum over the past two months after bottoming around $380 in March. The stock is up 118% since the beginning of the year and up more than 400% in the past twelve months.
Meanwhile, Wedbush analyst Dan Ives believes that Tesla stock has the potential to trade higher than $1000. Indeed, Dan Ives claims that the stock could trade around $1500, seeing robust demand for Model 3’s in China as well as “game-changing” battery and powertrain production plans.
“We believe with demand for Model 3’s ramping stronger than expectations in China heading into summer timeframe, the lockdown easing in the US/Europe, and some potentially ‘game-changing’ battery developments on the horizon (Battery Day likely in late June) that Tesla’s stock likely has room to run further,” reasons analyst Dan Ives.
Car sales in China jumped in May for the first time since June 2019, with 11,000 car sales during the month according to the China Passenger Car Association. Car sales stood around 4,633 in April.
Separately, the company announced to reduced the Model Y delivery timeline to four to eight weeks, down from the previous timeline of eight to twelve weeks. In addition, the company announced to cut electric vehicle price in China and the United States to boost demand.