December 19 (UPI) — Shares of electric car maker Tesla closed up 3.74 percent at $393.15 on Wednesday, local time, setting a new closing price,media reported. On June 19, 2017, Tesla’s stock hit an all-time high of $386.99. The latest share price gain has put Tesla with a market capitalisation of $70.9 billion, making it the world’s third-largest carmaker by market capitalisation, behind Japan’s Toyota and Germany’s Volkswagen.
Pictured: Tesla’s electric car and battery production facility in California
Both Wall Street bullies and long-term bearish ones have to admit that Tesla has a substantial lead in electric cars.
Tesla’s shares have risen 54 percent since the surprise third-quarter earnings report on October 23. It was the company’s best quarter since the third quarter of 2013.
Of course, Elon Musk, Tesla’s chief executive, has a higher goal in mind. Tesla’s share price still needs to keep up to reach Musk’s target price of $420. Last year, he said he wanted to privatize Tesla at $420 a share.
Tesla is enjoying a surge lately. In a recent interview, Oppenheimer bullish Analyst Colin Rusch said the company had had its toughest days.
However, Vanity Fair analyst Bethany McLean believes Tesla’s future could be in some jeopardy because of Musk’s financing and the company’s potential earnings. But Rush was quick to point out that at this stage, these negative claims about Tesla have become less accurate.
“Consumers are turning to quality and sustainable solutions and they are willing to pay for it,” Mr Rush said. Tesla has $5 billion in cash on its balance sheet, and their growth is accompanied by a lot of leverage. I think Tesla has had the toughest days. “