July 3 Reuters Tesla shares jumped 6 on Monday after betterthanexpected quarterly deliveries showed that Chief Executive Elon Musk39;s plan of boosting volumes through discounts was working.

The leading U.S. manufacturer of electric vehicles was set to increase its market capitalization by around 50 billion to 900 billion, based on early trading in its shares.

At 277, the stock has already more than doubled in value this year and risen far above price targets set by analysts, prompting caution from some brokerages that margins will suffer because of the aggressive discounting spree.

The price cuts helped the company deliver 466,140 vehicles in the April to June period, up 10 from the preceding quarter and 83 higher from a year earlier. The gap between how many cars Tesla produces and delivers also narrowed to 13,560 in the second quarter from 17,933 in the previous three months.

Tesla39;s price cuts are working in a big way, said Gene Munster, managing partner at investment firm Deepwater Asset Management. The average growth of deliveries over the previous seven quarters was 50. This quarter marks a measurable step up in growth.

At least eight analysts raised their price targets on the stock, with several saying Tesla39;s annual deliveries target of about 1.8 million vehicles now seems conservative as it already handed about half of that in the first six months of 2023.

The median price target on the stock stands at 210, which is about 20 below its last closing…