Market Overview

Tesla Shares Jump Nearly 12% In After-Hours Session After Q4 Earnings Beat

Tesla Shares Jump Nearly 12% In After-Hours Session After Q4 Earnings Beat

Tesla Inc.'s (NASDAQ: TSLA) shares jumped 11.6% higher in the after-hours session, trading at $648.50 on Wednesday after closing the regular session at $580.99.

What Happened

The surge comes as the electric vehicle maker beat Wall Street estimates on its fourth-quarter earnings.

The Elon Musk-led company posted earnings per share of $2.14 on its stock, beating analyst estimates of $1.72.

Tesla crossed the $600 mark for the first time ever in its history this session and peaked at $654 before dropping slightly.

Tesla's stock has seen a continuous rise since it posted better-than-expected numbers in the third quarter last year. The stock is up nearly 155% since the close on October 23, ahead of its Q3 earnings report.

The Palo Alto-based company crossed $100 billion in valuation last week, and now has a market capitalization larger than any other automaker in the world, ahead of Germany's Volkswagen AG (OTC: VLKAF).

New Street's Pierre Ferragu raised Tesla's price target to $800 from an earlier $530, causing the stock to surge. He reiterated the same stance in an interview with Bloomberg on Wednesday.

Tesla has also given a positive outlook of the future, particularly on the back of the fast growth in China it has seen ever since making an entry late last year with the Model 3 sedan, its first vehicle made in the country.

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