Shares of Tesla (NASDAQ:TSLA) surged higher on Wednesday. As of 10:00 a.m. EDT, the stock was up more than 6%, slightly over $1,000 for the first time.
The growth stock's gain follows an analyst's decision to increase his 12-month price target for shares to $1,000. Further, last night an email from Tesla CEO Elon Musk to employees leaked: It says the company wants to begin working toward volume production of its Tesla Semi.
Wedbush analyst Daniel Ives increased his price target for Tesla shares from $800 to $1,000 on Wednesday but kept a neutral rating on the stock. His more optimistic view for the stock reflects several factors, including signs of increasing demand in China, the reopening of the U.S. and European economies, and potential battery innovation from Tesla that could be "game changing."
Earlier this week, monthly sales of China-made Model 3 vehicles notably jumped to a record high in the country, suggesting demand for Tesla's fully electric cars is picking up in the important market.
In addition, Musk told employees in last night's leaked email that "it's time to go all out and bring the Tesla Semi to volume production." The company now wants to deliver the first Tesla Semi vehicles in 2021, Musk wrote.
Tesla shares have been surging recently. The stock is up nearly 400% over the last 12 months. The company's soaring sales and improving profitability have impressed investors. In 2020, investors are hoping that the recent launch of a Model 3 for the China market and the new Model Y will help drive more sharp sales growth.