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.
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.