Tesla's valuation is set to rise by over $50 billion after Elon Musk's EV price cuts boosted deliveries to an all-time high
- Tesla's stock price jumped 7% Monday.
- Those gains came after aggressive price cuts helped the EV maker post record quarterly delivery numbers.
Tesla stock's breathtaking rally just got another boost Monday after the EV maker reported record deliveries for the second quarter, helped by a series of price cuts it unveiled this year.
Shares jumped 7% Monday, rising to just over $279 shortly after markets opened.
If those gains hold up until the closing bell, the EV maker's total market capitalization will rise around $50 billion to just under $890 billion, by Insider's calculations.
Tesla's share price rallied after it said on Sunday that it had delivered a record 466,000 cars in the three months ending June 30, up 10% quarter-on-quarter and 83% year-on-year.
CEO Elon Musk has aggressively cut prices for the company's flagship Model 3 and Model Y vehicles in China, the US, and several other markets this year, with the aim of boosting volumes by 50% each year.
Sunday's stellar delivery numbers show that the strategy is already juicing up demand and helping Tesla to carve out market share from rival EV makers, according to Wedbush's Dan Ives.
"Tesla continues to play chess while other EV players are playing checkers and this was another trophy case quarter for Musk and co. despite much skepticism from the Street the last few months," he said in a research note Sunday.
Tesla's surge Monday looks set to extend the stock's stellar 2023, with an explosion of interest in AI tech and high-profile deals signed with Ford and GM already boosting shares by 112% year-to-date.