Tesla Inc. (NASDAQ: TSLA) shares continued to rise Monday, reaching new all-time highs, as investors are betting on the future of the company. Tesla now has surpassed Genera Motors (NYSE: GM) in valuation.
The rally is largely a result of high expectations from the Tesla’s upcoming Model 3. The model designed for mass production, is expected to sell for about $35,000, and is capable to overcome 215 miles per battery charge.
In 2016 Tesla’s performance has been stable. The electric car manufacturer delivered 76,230 vehicles in 2016, slightly below the goal of delivering 80,000 cars for the year.
“Tesla engenders optimism, freedom, defiance, and a host of other emotions that, in our view, other companies cannot replicate,” said Alexander Potter, an analyst at Piper Jaffray Cos., who upgraded the stock Monday after owning a Tesla for seven months and meeting with management. “As they scramble to catch up, we think Tesla’s competitors only make themselves appear more desperate.” Bloomberg reported.
Tesla explained that the transition to the new Autopilot hardware resulted in production delays.
“We were ultimately able to recover and hit our production goal, but the delay in production resulted in challenges that impacted quarterly deliveries, including, among other things, cars missing shipping cutoffs for Europe and Asia,” the company said according to Verge. “Although we tried to recover these deliveries and expedite others by the end of the quarter, time ran out before we could deliver all customer cars.”