Tesla (NASDAQ: TSLA) has topped $900 recently, beating many bearish estimates and causing more analysts to amend their targets to more bullish prices. Tesla's recent surge puts it just behind Toyota (NYSE: TM) for automotive market dominance.
Tesla surged 20% during last Wednesday trading in a move that puts the electric automaker over $900 per share, beating many bearish estimates for the company. The surge wasn't enough to change the minds of some more bearish minded analysts, who still believe Tesla may eventually hit a shortfall, but it was enough to cause a price target revision that gave the company a healthy bump in pre-market trading.
Tesla's surge puts it even further ahead of contemporaries such as Ford (NYSE: F) and General Motors (NYSE: GM) and places it $50 billion short of Toyota, the current most valuable carmaker in the industry. Tesla landmark sales and its explosive stock growth are slowly becoming a threat to Toyota, though whether or not the Palo Alto-based carmaker will be able to usurp the Japanese automotive giant remains to be seen.
Tesla's surge may nowhere to go but up as other catalysts line up to afford the company more rapid growth. Consumer Reports recently upgraded the standing of the Tesla Model 3, making the popular electric sedan a "top pick" within its price range. Consumer Reports cited increased reliability of the Model 3 for its decision. Tesla now places 11th out of 33 brands covered by Consumer Reports, reflecting growing confidence in the automaker. Tesla finds itself ahead of Toyota, but just behind BMW (FWB: BMW) owned Mini. Tesla is also benefitting from a massive spike in orders for its Cybertruck, which may have surpassed 500,000 orders.
Tesla is also set to open its first European factory. However, efforts were recently halted by German courts over environmental complaints. The fate of the Grünheide Gigafactory currently rests with German courts, and the outcome of the court's considerations may have a considerable effect on Tesla's financial future. Approval to continue will inevitably act as a major catalyst to drive Tesla's stock higher, while denial may hurt the company's growth.