Tesla’s shares reached record highs after they increased 7% to $177.92.
The automaker’s stock reached trading volumes of 15.6 million, way higher than the three-month average volume of 10.3 million. The increase came after a 25% jump in the automaker’s price target to $200 by a Deutsche Bank analysts, which predicts that Tesla will surpass margin expectations during the third quarter due to production volumes and strong demand.
Tesla’s shares have increased at an unexpected speed, rising 403.2% from only $35.36 at the beginning of 2013. The main factors which have lead to this increase are the sustained innovations by the automaker, stable demand and also strong safety ratings for its Model S.
Recently the automaker announced its plans to create an autonomous system which will allow the vehicle to take control of 90% of the miles driven. The company plans to launch such a vehicle in 2016, but it also plans to manufacture a cheaper EV. This move will make Tesla a tough competitor for GM which is already working on a low-cost EV which offers better mileage compared with the Chevrolet Volt plug-in hybrid.
In 2014 Tesla will introduce its new Model X SUV, which features premium interior design, Falcon Wing doors, Tesla Touchscreen in the dashboard and panoramic glass. The model will come with optional Dual Motor All-Wheel Drive, which will make Model X the fastest SUV.
The company sold 5,150 Model S vehicles during this year’s second quarter, more than the predicted 4,500 units, and for the third quarter it has set a goal of selling more than 5,000 Model S units and 21,000 vehicles globally for this year.