Elon Musk summed up his reaction to Wall Street’s latest bout of euphoria over his electric car company in one word this week: “Wow.”
The Tesla boss’s brief tweet came late on Monday in response to a new projection from analysts at Piper Sandler that Tesla was worth $2,332 a share. It was a massive reset from their previous estimate of $939 — but this year’s powerful rally has forced even some of Mr Musk’s biggest fans on Wall Street into a drastic re-evaluation to keep pace.
Tesla’s shares hit an intraday high of more than $1,790 on Monday before falling back, or more than four times the low point they touched during the March sell-off. At its market capitalisation peak of $320bn, that valued the company — which was haunted by bankruptcy concerns little more than a year ago — at 50 per cent more than Toyota, only two weeks after overtaking the Japanese company to become the world’s most highly valued carmaker.