Wednesday, 10 June 2020 15:41

Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus

Written by Joey Klender, Teslarati

Shares of Tesla opened June 10 at new highs, crossing $1,000 per share as investors weighed in on rumors of the Tesla Semi’s initial production push.

An email from Elon Musk circulated early that morning, indicating Tesla’s focus would be to get the Semi to “volume production.”


“It’s time to go all out and bring the Tesla Semi to volume production,” Musk said. “It’s been in limited production so far, which has allowed us to improve many aspects of the design.”


Musk indicated in the Q1 2020 Earnings Call Update Letter the Semi would not begin deliveries until 2021.


In early January, Tesla’s Truck Team contacted Semi pre-order holders indicating a limited production push would take place in the second half of 2020.


The Semi was unveiled in November 2017 and Tesla has been assessing its performance since then. Recently, the commercial vehicle was subjected to cold-weather testing in Alaska.


Tesla’s Model 3 ramp-up in China, along with its developments of a million-mile capable battery, has also convinced Wedbush analyst Dan Ives to raise his price target for the electric automaker from $800 to $1,000. Ives maintained a neutral rating for the stock.


“We believe with demand for Model 3’s ramping stronger than expectations in China heading into summer timeframe…that Tesla’s stock likely has room to run further,” Ives said in a note to investors.


“While the stock has been roaring higher, we believe the main fundamental catalyst continues to be the massive China market which is showing clear signs of a spike in demand for Musk & Co. heading into the rest of this year,” he added.


Ives also attributed battery developments that could be potentially “game-changing” for Tesla as another reason for his price target increase.


Indicating Tesla’s upcoming “Battery Day” would occur in late June, the company’s Chinese battery supply firm CATL, recently released details on its own million-mile battery assembly.


Tesla and CATL signed a two-year contract in early 2020 that pairs the two companies in a partnership from June 2020 to July 2022. In the U.S., speculation continues to indicate Tesla will unveil its own million-mile battery pack that will increase the life span of its electric vehicles by a considerable margin based on current warranty documents.


TSLA stock closed at $940.67 on June 9 and is currently trading at $998.25 at the time of writing.


We thank Teslarati for reprint permission.