Tesla,the manufacturer of electric vehicles hit its shares traded at $949.92 a unit on Monday after opening at $919.
Tesla share surged after Chinese data showed the company sold 11,095 of its made-in Shanghai Model 3 electric sedans to Chinese customers in the month of May.
Tesla vehicle sales in China increased by 205% from a slump in April attributed to Covid-19 impacts on consumers and businesses in China, including Tesla’s own.
JL Warren Capital — a China-focused equity research firm in New York — said sales of the made-in-China Model 3 were driven by discounts and subsidies.
“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.”
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”