Tesla to gain $50 billion in market value due to record EV deliveries

Tesla Inc was set to add about $50 billion to its market value as its shares surged on Monday after posting record deliveries in China that led to a global shipment of 184,800 vehicles in the first quarter, surpassing estimates of 177,822 vehicles.

The stock jumped nearly 8 percent in pre-market trading and it was on track to hit its highest in over a month.

There was strong reception for Tesla's Model Y crossover in China, which was quickly progressing to full production capacity.

Despite a global chip shortage, various supply chain issues, and rising competition, Tesla produced roughly the same amount of vehicles in the first quarter as in the fourth quarter.

At least three brokerages raised their price targets on Tesla’s stock with Wedbush increasing it by $50 to $1,000, much higher than the median price target of $712.50 while raising its rating from neutral to outperform.

Tesla CEO Elon Musk’s wealth increased by more than eight-fold due to the surge in the company's stock value last year.