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Tesla Stock Takes Valuation over $100 Billion as Q4 Earnings Report Gets Closer

Summary:
Tesla stock is doing amazing numbers in the market and breaking grounds for the auto company. Yesterday, Tesla stock surged impressively and has now crossed 0 billion in market valuation. Tesla (TSLA) climbed more than 6% to cement a new record high at 9.56.Tesla Stock Pushes ValuationAt the moment, Tesla is now the world’s second most valuable auto company. With a market cap of about 2.6 billion, it has pushed Volkswagen (VWAGY) down and is just behind Toyota Motors (TM). Toyota is currently valued at 8 billion.In the last five days, TSLA has climbed almost 11% with a 1-month surge of more than 32%. In the last six months, the share price has more than doubled and has pulled in 90% over the last 12 months. In 2020 alone, the company has recorded 36.15% gains and is still on

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Tesla stock is doing amazing numbers in the market and breaking grounds for the auto company. Yesterday, Tesla stock surged impressively and has now crossed $100 billion in market valuation. Tesla (TSLA) climbed more than 6% to cement a new record high at $569.56.

Tesla Stock Pushes Valuation

At the moment, Tesla is now the world’s second most valuable auto company. With a market cap of about $102.6 billion, it has pushed Volkswagen (VWAGY) down and is just behind Toyota Motors (TM). Toyota is currently valued at $198 billion.

In the last five days, TSLA has climbed almost 11% with a 1-month surge of more than 32%. In the last six months, the share price has more than doubled and has pulled in 90% over the last 12 months. In 2020 alone, the company has recorded 36.15% gains and is still on its way to loftier heights.

TSLA Earnings and Forecast

The company, led by Elon Musk, will reveal its fourth-quarter earnings next week on Jan 29, after markets have closed. With the recent surge, the market is anticipating interesting figures from the upcoming report. Financial data and software company FactSet believes that Q4 revenue figures should hit $6.45 billion. If this happens, Tesla will have lost 4% from the same period in 2018. On the other hand, that figure will be 10% gains from 2019’s Q3.

On forecasts, analyst Daniel Ives from financial services firm Wedbush, is extremely bullish. According to him, the success of the factory in Shanghai, China, and the strong demand in that market, has informed a new price target. In a recent note, Ives wrote:

“In our opinion, the new long-term bull case scenario on the stock is $900 with Tesla’s ability to ramp production and demand in the key China region during the course of 2020/2021 a major swing factor on the stock.”

Ives estimates that the market in China alone can deliver between $100 and $300 per share.

Tesla Valuation in 2020

At the moment, 2020 is looking amazing for Tesla and its stock. Most opinions by market analysts are extremely bullish, expecting bigger valuation for 2020 than 2019.

CNBC’s Jim Cramer is so bullish that he declared that the best way to judge TSLA is as a tech company and not just an auto company. This is because the company seems to easily dwarf rivals, especially with electric offerings. Cramer said:

“Tesla’s not really a car company, it’s a tech company on wheels. That’s what keeps confusing people. Almost every major automaker now has an electric car, yet almost none of these cars have any demand to speak of at all, except for Tesla.”

Cramer has previously expressed positive reviews on TSLA.

Musk Won’t Make Money from Tesla…Yet

Despite Tesla’s raging success, CEO Elon Musk might be far from a big cheque. Firstly, the wording of his agreement with shareholders might demand that the company maintains the >$100 billion market cap for a while. This might be difficult because of TSLA’s infamous volatility.

Musk is also battling a lawsuit from shareholders who claim that his pay is, in simple terms, ridiculous.

For now, Musk’s firebrand leadership seems to be paying off.

Tolu Ajiboye
Author: Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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