Auto posted on 2/4/2020 1:50:23 PM by christina , Likes: , Comments: 0, Views: 639
So far, so good for Tesla CEO Elon Musk this decade. Following a surprise profit in the third quarter of last year, higher than expected vehicle deliveries and a profit booked in the fourth quarter, Wall Street is responding in a big way.
On Monday, Tesla stock rose as much as 18%. The major upswing follows Argus Research's upgraded target price of $808, up from a previous $556 per share. CNBC reported the firm cited positive fourth-quarter financial results as part of its upgraded target price. Shares reached an all-time high of $783 midday, though at the time of this writing, they hovered around $754.
All of Argus Research's bullish predictions hinge on continued demand for the Model 3 and healthy revenue from Teslas two older models, the Model S and Model X. The carmaker seems to believe it has everything necessary for success, as it forecasted delivering 500,000 vehicles in 2020. In the fourth quarter of last year, Tesla delivered a whopping 112,000 vehicles, which exceeded Wall Street estimates by several thousand cars.
The ongoing positive Wall Street performance is a boon for Musk himself, too. The CEO will be in for a $364 million payday should the company's market capitalization keep above $100 billion. It's part of an aggressive pay package agreed to in 2018, which set some rather lofty goals for Musk and Tesla.
The carmaker reached the $100 billion threshold that triggered the potential payout last month. Now, it needs to hold at a one-month and six-month average for Musk's first big pay day.