- Tesla reported record fourth quarter 2019 vehicle delivery numbers Friday that brought full-year deliveries above the low end of the company's estimated range.
- Shares of Tesla surged as much as 5% to a new high and hit an intraday record in early trading Friday.
- The report is "another major feather in the cap for Musk & Co.," Dan Ives of Wedbush wrote in a Friday note.
- Watch Tesla trade live on Markets Insider.
Shares of Tesla surged as much as 5% and hit an intraday record in early trading Friday after the company reported deliveries that beat the low end of its guidance.
Tesla delivered a record 112,000 vehicles in the fourth quarter of 2019, according to a company press release. That brings the annual total to 367,500 deliveries, 50% more than in 2018 and above the low end of Tesla's guidance of 360,000 to 400,000 deveries. In its third-quarter update letter, Tesla said it was "highly confident" it would deliver more than 360,000 vehicles in the full year.
The automaker opened at a fresh high after the gains, which could signal renewed investor confidence that a turnaround is underway. Tesla has rallied nearly 70% since October, when it returned to profitability after a slew of disappointing quarterly reports.
The solid report is a "another major feather in the cap for Musk & Co.," Dan Ives of Wedbush wrote in a Friday note.
He continued: "While part of this recent rally has been a massive short covering, it has also been driven by underlying fundamental improvement as the company's ability to impressively not just talk the talk but walk the walk has been noticed by the Street."
The optimism around Tesla's story has also grown "markedly from the dark days seen earlier in 2019," Ives wrote.
Other analysts are also seeing a brighter future for Tesla. On Thursday, Jed Dorsheimer of Canaccord Genuity raised his price target to $515 from $375, ahead of the delivery numbers. It's now the highest Tesla price target from a major Wall Street brokerage.
Dorsheimer boosted his target price in anticipation of a solid fourth quarter report.
"While bears have feared demand issues as a function of tax credit expiration for Tesla, we suspect a solid Q4 combined with the robust Q3 should put these fears to rest," Dorsheimer wrote.
Tesla gained 26% in 2019.
