Tesla's share price crosses $1,000 for the first time

The company appears to be on track to reach 100,000 deliveries from its local plant in the first year

A Tesla showroom in Sydney. Bloomberg

Tesla shares eclipsed $1,000 (Dh3,673) for the first time ever on Wednesday as rising demand for the company’s Model 3 in China led Wedbush analysts to tout the “massive”’ market opportunity and its ongoing battery efforts.

Analyst Daniel Ives called the demand out of China “a ray of shining light for Tesla in a dark global macro” setting, with the company appearing to be on track to reach 100,000 deliveries from its local plant in the first year. Mr Ives maintained his neutral rating but boosted his price target to $1,000 from $800 and said his new bull case implies shares could be worth $1,500 from $1,350 previously.

Further demand for electric vehicles in China paired with the easing of lockdowns in both the US and much of Europe and the potential for “game-changing” battery developments at a company event planned for this month signal shares can move higher, Mr Ives wrote.

Shares of the Palo Alto, California-based electric-vehicle maker rallied as much as 6.8 per cent on Wednesday to touch a record $1,005. The shares have nearly quintupled in the past year as its market valued ballooned to $185 billion.

Tesla’s highly anticipated “Battery Day” will provide the next setting for chief executive Elon Musk to announce a number of new potential developments, according to Mr Ives. He believes the company is getting closer to announcing a million-mile battery.

Tesla has 10 buy-equivalent ratings, with 12 analysts recommending to hold the shares and 15 advising clients to sell, according to data compiled by Bloomberg. The average 12-month price target of $641 implies shares are worth more than a third less than Wednesday’s trading.

The new Model 3 Tesla at a pop-up in Yas Mall, Abu Dhabi. Khushnum Bhandari / The National

Interiors of the new Model 3 Tesla. Khushnum Bhandari / The National

For the next six months the Model 3 - along with Teslas other cars, the Model S and the Model X - will be on display at Yas Mall. Khushnum Bhandari / The National

The Tesla Model 3 is a smaller, simpler and more affordable version of its predecessors. Khushnum Bhandari / The National

Tesla claims that almost 140,000 have been delivered to customers in the United States. Khushnum Bhandari / The National

Standard features include full self-driving hardware, Supercharging capability, and an eight-year, 160,000km battery warranty. Khushnum Bhandari / The National

Options include 20-inch alloy wheels in place of the standard 19-inch rims. Khushnum Bhandari / The National

Boot space is generous, with plenty of room up front where a petrol motor would normally reside. Khushnum Bhandari / The National

Tesla claims the Dh170,000 Model 3 has a range of 352km and can accelerate to 100kph in 5.8 seconds. Khushnum Bhandari / The National