Shares of Tesla (NASDAQ:TSLA) jumped on Monday, rising more than 10% as of 11:54 a.m. EDT. The gain adds to a huge run-up in the electric-car maker's stock recently. Shares are up 218% year to date and nearly 40% in the last five trading days alone.
The stock's move higher on Monday was likely driven primarily by an analyst's decision to raise his 12-month price target for the stock to $1,500.
Tesla's recently reported better-than-expected delivery total in the second quarter has one analyst revisiting his expectations for the growth stock. The company's 90,650 deliveries during the period (compared to analysts' average forecast for about 72,000) highlight its strong momentum relative to the rest of the auto industry, the JMP Securities analyst says.
The analyst slapped a $1,500 12-month price target on the stock, up from a previous target of $1,050.
Tesla's robust second-quarter deliveries were notable since they occurred during a quarter in which the company's main U.S. factory was shut down for the first half of the quarter. Furthermore, with more than 193,000 vehicles delivered during the first half of the year and production of the company's new Model Y ramping up, Tesla now has a shot at achieving its pre-coronavirus 2020 outlook for more than 500,000 vehicles this year.