Tesla’s stock soared yesterday following the announcement that Hertz had purchased 100,000 electric vehicles (EVs), which made the company hit the $1 trillion market cap. Now, some experts see the EV company’s valuation continuing to balloon and the stock continuing to rise.
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Tesla’s stock is up 4.45% this morning, at $1070.
“Wild $T1mes!,” Musk tweeted yesterday, to which MicroStrategy co- founder Michael Saylor replied: “Congratulations. The first trillion is always the hardest.”
Peter Cohan, a lecturer at Babson College and author of “Goliath Strikes Back,” told GOBankingRates that “unlike Theranos, Tesla has a leader who aspires to change the world and despite occasional flawed execution actually delivers.”
“He also has the added power to mesmerize the masses with his Twitter feed which I am guessing will help power the stock as Tesla stumbles in the future,” Cohan added. “With its rapid growth, profitability, expansion in China, new products, improving battery technology and new manufacturing plants, Tesla stock could double in the next year after rising over 140% in the last 12 months.”
Cohan noted that he sees a $2 trillion valuation in the next six to 12 months.
Last week, the company reported its third-quarter earnings, exceeding analysts’ expectations. And earlier this month, Tesla exceeded delivery expectations, announcing it had delivered 241,300 vehicles in the third quarter despite global supply chain issues that have hindered many carmakers. By hitting the trillion-dollar market cap, Tesla joins companies such as Apple, Amazon and Microsoft.
Musk also tweeted that it was “strange that moved valuation, as Tesla is very much a production ramp problem, not a demand problem.”
To be clear, cars sold to Hertz have no discount. Same price as to consumers.
— Elon Musk (@elonmusk) October 26, 2021
Indeed, Hertz’s purchase, for example, represents the largest electric vehicle fleet in North America and one of the largest in the world.
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Last updated: October 26, 2021
This article originally appeared on GOBankingRates.com: Experts Say Tesla’s Trillion-Dollar Stock Could Go Even Higher — $2 Trillion Valuation Not Out of Reach