After a five-day streak of losses, Tesla stock surged on Tuesday rebounding with its largest daily gain since February 2020
The 20% surge, which added over $100 billion to Tesla’s market capitalization, followed an increase in China sales and an analyst’s rating of his stock.
Pierre Ferragu, a New Street Research analyst raised his Tesla rating to “buy” from “neutral,” and upped his target price to $900 from $578, contributing to the surge in the stock, according to the report.
“As much as the market severely corrected the recent excesses of optimism reflected in Tesla’s valuation, our recent work strengthened our confidence about the solid outlook for the company in the next two years,” Ferragu wrote in a client note.
Tesla ended at $673.58 after its strongest daily rise in a year. The stock is still down about 25% from its all-time intraday high of $900 per share on January 25
China Passenger Car Association published sales data also contributed to the surge on Tuesday. According to CPCA, retail sales of passenger cars in February 2021 in China more than quadrupled to around 1.2 million vehicles compared with February 2020 numbers.
Tesla sold 18,318 China-made vehicles in February, up from 15,484 in January, the Chinese auto industry body said