Shares of the electric vehicle company gained 2.2% to $721.50 in early Monday trading, tacking on to the gains from last year that saw it become the world's largest auto manufacturer by market cap, surpassing $600 billion in value.
On Saturday, the company said it delivered 499,500 vehicles in 2020, including 180,570 SUVs and sedans for the October through December period.
Though the company's annual sales rose 36%, the mark still fell short of Musk's goal of delivering 500,000 vehicles for the year, despite the coronavirus pandemic.
Musk took to Twitter to note the achievement, saying he thought the company had a 10% chance of survival in its early days.
In a note to investors on Monday, Wedbush Securities analyst Dan Ives noted that Tesla could hit 1 million delivery units by 2022, assuming China remains a hot market for electric vehicles.
"We believe that the China growth story is worth at least $100 per share in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3," Ives wrote in the note. "In a nutshell, we believe EV demand in China is starting to accelerate with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that Musk and Tesla are laser focused on capturing."
Ives has a neutral rating on Tesla shares with a $715 price target.
The Associated Press contributed to this story.