Shares of Elon Musk’s electric car company popped Wednesday after Goldman Sachs resumed coverage of the company and slapped it with a “buy” rating.

Tesla’s shares jumped more than 5 percent Wednesday morning before losing some ground in the afternoon, up 3.3 percent to $733.49, after analyst Mark Delaney gave the automaker’s stock a $864 price target, citing its head start on the competition in the EV market.

ALSO READ: Rihanna sent ventilator to dad after he tested positive for coronavirus

“We are positive on Tesla because we believe that the company has a significant product lead in EVs, which is a market where we expect long-term secular growth,” Delaney said in a note Tuesday night.

He said he expects Tesla’s annual growth rate to remain “well over 20 percent.”

ALSO READ: I haven’t been cleared of COVID-19 – El-Rufa’I speaks

Goldman Sachs’ previous Tesla analyst, David Tamberrino, had a “sell” rating and a $158 price target as of last June, the lowest on the street at that time.

Goldman’s rating comes a day after Credit Suisse raised its rating on Tesla to “neutral” from “underperform,” saying short-term changes in demand related to the outbreak will distract traditional automakers like General Motors and Ford in their gradual transition toward electric vehicles.

Tesla’s shares have more than doubled in recent weeks from their March 18 low of $361.22. The stock’s value has climbed more than 25 percent in just the last week, boosted in part by a 450 percent month-over-month jump in Chinese car registrations, according to data from auto consultancy LMC Automotive.

NY Post

Vanguard