A battery supply agreement has been signed between Tesla Inc (TSLA) and CATL, China’s leading electric vehicle battery manufacturer based in the city of Ningde.
Tesla shares closed higher for a fifth consecutive trading session on NASDAQ on Monday. It has also been the sharpest daily surge since May 9th 2013. The stock went up 19.89% ($129.43) to $780.00, after touching an intraday high at $785.00 and also a fresh all-time high.
Shares of Tesla Inc have risen 86.46% so far in 2020 compared with a 4.50% gain for the benchmark index, Nasdaq 100 (NDX).
In 2019, Tesla’s stock went up 25.70%, thus, it underperformed the Nasdaq 100, which registered a 37.96% gain.
In a stock exchange filing, China’s CATL said that Tesla was expected to specify the battery purchase volume between July 2020 and June 2022, depending on its own needs.
Last year, Tesla initiated production at its $2 billion facility in Shanghai, its first vehicle manufacturing site abroad, and began delivering its first China-produced Model 3 vehicles to the public on January 7th. The electric car maker has been looking to diversify battery supplies for that facility.
In other news, on Monday Panasonic Corp posted the first quarterly profit in its US battery business with Tesla following years of production issues.
Meanwhile, in a research note from January 31st, investment management firm Ark Invest said it forecast Tesla shares might surge to $7 000 by 2024.
Analyst stock price forecast and recommendation
According to CNN Money, the 27 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $506.00, with a high estimate of $800.00 and a low estimate of $200.00. The median estimate represents a 35.13% downside compared to the closing price of $780.00 on February 3rd.
The same media also reported that at least 12 out of 30 surveyed investment analysts had rated Tesla Inc’s stock as “Sell”, while 9 – as “Hold”. On the other hand, 7 analysts had recommended buying the stock.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
