Tesla's valuation is set to rise by over $50 billion after Elon Musk's EV price cuts boosted deliveries to an all-time high
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- Tesla's stock price jumped 7% in premarket trading Monday.
- Those gains came after aggressive price cuts helped the EV maker post record quarterly delivery numbers.
- "This was another trophy case quarter for Musk and co.," Wedbush analyst Dan Ives said.
Tesla stock's breathtaking rally just got another boost after the EV maker reported record deliveries for the second quarter, helped by a series of price cuts it unveiled this year.
Shares jumped 7% in Monday's premarket, rising to just under $280 at last check.
If those gains hold up until the closing bell, the EV maker's total market capitalization will rise $56 billion to just under $890 billion, by Insider's calculations.
Tesla's share price rallied after it said on Sunday that it had delivered a record 466,000 cars in the three months ending June 30, up 10% quarter-on-quarter and 83% year-on-year.
CEO Elon Musk has aggressively cut prices for the company's flagship Model 3 and Model Y vehicles in China, the US, and several other markets this year, with the aim of boosting volumes by 50% each year.
Sunday's stellar delivery numbers show that the strategy is already juicing up demand and helping Tesla to carve out market share from rival EV makers, according to Wedbush's Dan Ives.
"Tesla continues to play chess while other EV players are playing checkers and this was another trophy case quarter for Musk and co. despite much skepticism from the Street the last few months," he said in a research note Sunday.
Tesla stock's surge in Monday's premarket looks set to extend its stellar 2023, with an explosion of interest in AI tech and high-profile deals signed with Ford and GM already boosting the tech giant's shares by 112% year-to-date.