Tesla Hits $100B Market Cap, Gerber Says Stock Is 'Correctly Valued Now'

Tesla Inc.'s (TSLA) stock is trading higher by 5% Wednesday morning, pushing its valuation over $100 billion.

The surge was preceded by a 7.19% higher close in Tuesday's session, after New Street Research raised the electric vehicle maker's price target from $530 to $800.

Earlier this month, Tesla zoomed past the combined market caps of General Motors Company (GM) and Ford Motor Company (F)

Tesla's stock price has more than doubled in the last three months since it reported a profit in the third quarter. Investor sentiment is also boosted by Tesla's rapid progress in China, as the company began delivering its first China-made model ahead of schedule.

Gerber: Tesla Is Correctly Valued

Tesla's stock has received a few price target raises this month, and the $800 target is now the highest on the street.

"I think all these firms upgrading Tesla at all-time highs with higher and higher targets is a joke," Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth and Investment Management, told Benzinga. "Where were all these firms 7 months ago[?]"

Gerber says the recent analyst calls are simply to "catch a headline on a stock they missed."

"[T]here are no financial metrics to support that price [$800] near term. Saying something is worth X 5 years from now means nothing. It’s what it is worth today that matters. I think Tesla is correctly valued now."

Tesla's stock traded around $573.70 per share at time of publication.

Read our full disclaimer here.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.