- Tesla stock price printed a fresh high of $968.99 to finish the day 13.7% higher
- “The move, frankly, baffled investment pros,” commented a respectable Wall Street journalist
- Tesla’s CEO Elon Musk saw his fortune increase $4.5 billion in just a few hours
Tesla stock price erupts higher once again yesterday, after managing to gain nearly 20% yesterday. Shares of the electric car maker hit a new high of $968.99, almost $200 higher than Monday’s high of $786.14.
Fundamental analysis: Wall Street “amazed” and “baffled”
If you browse Google for news on Tesla and its market performance, you will see that journalists and analysts look baffled as the stock continues to print higher levels on an hourly basis.
“The question is why? The move, frankly, baffled investment pros,” writes Barron’s Al Root.
Tesla stock price is now up 120% year-to-date (YTD) after it gained more than 40% in just two trading sessions this week.
“I just can’t believe this freaking stock. It’s insane,” said Craig Irwin, Wall Street Analyst at Roth Capital.
Tesla’s CEO Elon Musk saw his fortune increase $4.5 billion in just a matter of hours. He has a stake of around 19% in Tesla.
Pierre Ferragu, who has one of the highest price targets for Tesla at $800, believes that Tesla’s profit margins are their key to success.
“Tesla has demonstrated that it can build cars while generating cash and with best-in-class profit margins,” said Pierre Ferragu, an analyst at New Street Research.
One of Tesla’s bigger supporters and major shareholder – Ron Baron – believes that this is just the start for the electric car giant.
“So basically, you’re looking at the very start of … what’s going to happen with Tesla. This could be one of the largest companies in the whole world,” he added.
As a remainer, Tesla managed to generate $1 billion in cash after capital expenditures with a profit of $105 million in the fourth quarter, a second straight quarterly profit.
Technical Analysis: Trip into the uncharted territory
The chart below speaks for itself. There is no resistance levels to mark on the chart as Tesla stock price trades beyond all resistance levels marked by analysts in previous weeks.
Those who are looking to hop on the train and buy the Tesla stock, may want to wait for a pull back towards $600. As the stock gapped higher today, we may pull back this week to close the gap to $786 first, before correcting further lower. However, given the momentum that surrounds the stock now, we won’t be surprised if the stock price reaches the $1,000 mark first.
Tesla stock left Wall Street analysts baffled after gaini nearly 14% today on top of 20% yesterday. It looks like the bulls want to see $1,000 target reached first before the pullback takes place.