Shares of Tesla Inc. surged 3.4% toward record territory in premarket trade Monday, after the electric-car maker gave an update on first-quarter deliveries that was above expectations. The stock traded at $287.57, paring earlier gains to a high of $289.60, to put it on track to open above the Sept. 4, 2014 record close of $286.04, but below that day's all-time intraday high of $291.42. The company said over the weekend that it delivered just over 25,000 vehicles in the first quarter, above expectations of a range of 23,000 to 24,500. RW Baird analyst Ben Kallo reiterated the outperform rating on the stock, and his price target of $368, which is 32% above Friday's closing price of $278.30. "The release of Q1 deliveries was another de-risking event for the stock, and we expect shares to trade higher as investors are increasingly able to focus on the Model 3," Kallo wrote in a note to clients. "We continue to believe [Tesla's stock] can make new highs in 2017 with the continued execution towards Model 3 production ramp." The stock has soared 30% year to date through Friday, while the S&P 500 has gained 5.5%.
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