DOW JONES28,992.41-227.57 -0.78%
S&P 5003,337.75-35.48 -1.05%
NASDAQ9,576.59-174.38 -1.79%

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

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

Benzinga · 01/22/2020 12:52

Tesla Inc.'s (NASDAQ: 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 (NYSE: GM) and Ford Motor Company (NYSE: 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.

Related Links:

Tesla And Michigan Reach Settlement For Direct Delivery To Customers

Morgan Stanley Downgrades Tesla On Risk, Valuation Following Massive Stock Run