Tesla is heading into the holiday weekend on a tear.
Elon Musk’s electric car company reported significantly better-than-expected vehicle deliveries for the second quarter of 2020, despite operational disruptions caused by the coronavirus pandemic. Most of those deliveries were Model 3 and Model Y vehicles.
Tesla said it produced 82,272 vehicles and delivered 90,650, figures that were close to pre-coronavirus levels. Analysts cited by MarketWatch had only expected about 72,000 deliveries.
Shares of Tesla were up almost 9% to $1,214 in early-morning trading on Thursday. To put that number in context, Tesla was trading at about $223 in July 2019, meaning its stock price has increased more than fivefold since this time last year.
How long can it last? That’s hard to say, but analysts have been sounding the “Tesla is overvalued” alarm for a while now. In a report last month, Morgan Stanley rated the stock as “underweight,” saying investors keen on viewing Tesla as a growth-potential tech stock à la Apple or Microsoft are ignoring “significant inherent differences in Tesla’s business model and capital intensity,” Forbes reported. The firm set a price target of $650.
Earlier this year, Barclays auto analyst Brian Johnson warned that Tesla’s rally had all the makings of a 1999-era bubble, CBNC reported. Even Musk himself tweeted in May that he thought Tesla stock is “too high imo.”
Tesla is expected to report second-quarter earnings later this month. You can check out the full deliveries report here.