Tesla surges above $500 billion market cap as its post-earnings rally helps pare last year's brutal rout
- Tesla pierced above a market valuation of $500 million during Thursday's stock rally.
- The EV maker's market cap still remains far off its peak of about $1.2 trillion.
Tesla pushed above a market valuation of $500 billion on Thursday after the EV maker's record quarterly profit fueled a rally that chipped further away at last year's stock plunge.
The stock jumped as much as to 11.7% to reach $161.42 a share, propelling the company's market capitalization to $510 billion.
The last time Tesla's valuation closed above the half-a-trillion-dollar mark was in mid-December. Tesla shares through Wednesday's close had climbed by 17% in 2023, following their 64% rout in 2022.
Tesla's record fourth-quarter profit of about $3.7 billion and upbeat guidance late Wednesday set off the rally that helped repair some damage from its worst-annual stock loss ever.
Last year's slide knocked the company from its valuation peak of about $1.2 trillion. Analysts and investors pointed to slower demand and Musk's focus on his purchase of Twitter as factors that drove down the stock. It finished among the S&P 500's 10 worst-performing stocks last year.
Following Tesla's recent vehicle price cuts aimed at invigorating demand, the company projected vehicle deliveries of 1.8 million in 2023. If realized, that would top 1.31 million in 2022 deliveries by 37%.
While the stock jumped Thursday, Wall Street analysts were mixed on Tesla's results. Wedbush raised its price target to $200 from $175 and reiterated its outperform rating. JPMorgan said it viewed the car maker's margin trajectory negatively and kept the company at an underweight rating with a $120 price target.
Tesla boss Elon Musk told analysts late Wednesday its vehicle price changes "make a difference for the average consumer."
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