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- Tesla's stock rose 7% on Monday in premarket trading.
- These gains were made after aggressive price reductions helped the EV manufacturer post record quarterly deliveries.
- Wedbush analyst Dan Ives stated that "this was another trophy quarter for Musk and co."
Tesla's stock has just received a new boost. The EV maker announced record deliveries for its second quarter. This was aided by the price cuts that it introduced this year.
In the premarket on Monday, shares rose 7% to just below $280.
Insider calculates that if these gains continue until the closing bell the total market cap of the EV manufacturer will increase by $56 billion and reach just below $890 billion.
Tesla's shares rose after the company announced on Sunday it delivered 466,000 vehicles in the quarter ending June 30. This was an increase of 10% from one quarter to another and 83% compared to last year.
Elon Musk, CEO of Tesla, has aggressively reduced prices on the Model 3 and Model Y flagship vehicles this year in China, US and other markets, with a goal to increase sales by 50% per year.
According to Wedbush analyst Dan Ives, Sunday's impressive delivery numbers prove that the strategy has already helped Tesla gain market share over rival EV manufacturers.
Musk said that Tesla continues to play chess, while the other EV players were playing checkers. This was yet another quarter of success for Musk and co. despite the skepticism expressed by the Street in the past few months.
The surge in Tesla's stock in the premarket on Monday looks to be extending its 2023. An explosion in interest in AI technology and high-profile agreements signed with Ford and GM have already boosted the tech giants' shares by 112% so far this year.
Read More: Forget GAMMA and FAANG, the 'Magnificent Seven' tech stocks now dominate the market
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By: gglover@insider.com (George Glover)
Title: 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
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-elon-musk-price-cuts-model-y-investing-analysis-2023-7
Published Date: Mon, 03 Jul 2023 11:52:43 +0000
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