This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Tesla Inc (NASDAQ: TSLA) reported record earnings last week, and the stock has climbed higher ever since. Shares got another boost today with an analyst price target increase as well as hopes the company's China business will follow results released by domestic competitors today. At the closing bell on Monday (US time), Tesla shares had jumped about 3% from Friday's closing price.So what
Tesla sold more than 200,000 vehicles and surpassed $1 billion in net income for the first time in its second quarter, which ended June 30. The company also told investors it is on track to build its first Model Y vehicles at new factories in Berlin and Austin, Texas, by the end of this year. Investors are also anticipating strong numbers out of Tesla's Shanghai factory after July delivery data was released by several Chinese electric vehicle makers today.Now what
Following the strong quarterly performance, Mizuho Securities analyst Vijay Rakesh has increased the firm's price target to $825, representing more than 20% upside from Friday's closing price. The analyst believes cost efficiencies across production facilities will continue to help improve gross margins. Also Monday, Goldman Sachs Group Inc (NYSE:GS) included Tesla in a group of companies it recommends, CNBC reports. Tesla also pointed to strong performance at its Shanghai plant as contributing to the company's success. In the earnings release, Tesla stated: "Due to strong U.S. demand and global average cost optimisation, we have completed the transition of Gigafactory Shanghai as the primary vehicle export hub." Today, Chinese competitors Nio Inc (NYSE:NIO), XPeng Inc (NYSE:XPEV), and Li Auto Inc (NASDAQ:LI) all reported strong July vehicle delivery numbers, with year-over-year results jumping 125%, 228%, and 251%, respectively. Tesla investors today are anticipating that strength will flow into the company's China sales as well.This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
