Tesla Motors Inc (NASDAQ:TSLA) shares hit $180 for the first time on Thursday, but that hasn’t stopped bullish investors from driving the company’s stock even higher today. On this morning’s market, the company’s stock went briefly above $185 per share, and the firm’s market capitalization went above $22 billion for the first time.
About 25 minutes after the market opened this morning, shares in Tesla Motors Inc (NASDAQ:TSLA) hit a high of $185.49. At time of writing, shares had pulled back from that high to trade at $183.81, up 3.31 percent for the day’s trading. This morning’s rise is attributed to a Deutsche Bank report published yesterday that put a $200 price target on the company.
Tesla Motors Inc (NASDAQ:TSLA) shares have risen by more than 11 percent since Monday. One of the most worrying parts of the rise is that Tesla hasn’t said or done anything different in recent days. The company is still going about its exceptional business normally, while investors are getting involved on the recommendation of an analyst.
The Deutsche Bank AG (NYSE:DB) (ETR:DBK) report rated Tesla Motors Inc (NASDAQ:TSLA) a Buy because of better-than-expected expectations of the company’s upcoming earnings. The report predicted that gross margins would come in at 19 percent for the current quarter and 20 percent for the December quarter.
Stronger demand for Tesla Motors Inc (NASDAQ:TSLA) vehicles in the United States and Europe also factored into the increase in price target from the analysts. The research was based on conversations with Tesla and monitoring information available to the analysts. The analysts are expecting a moderate beat on June quarter results; the market has driven the stock price up by 11 percent in two days.
This morning’s new high brings the total increase in the value of Tesla Motors Inc (NASDAQ:TSLA) above 440 percent for the year so far. The electric car company, which is expected to show revenue of just over $2 billion for the year, is the hottest stock on the market.
The theory that Tesla Motors Inc (NASDAQ:TSLA) stock is in a bubble has been somewhat supported by the massive rise in response to the Deutsche Bank AG (NYSE:DB) (ETR:DBK) report. Metrics predicted to come in modestly over projections should not result in a $2 billion dollar addition to the value of a company that lost $3.20 per share last year.