Tesla Inc was set to add about 50 billion to its market value as the electric carmakers shares surged on Monday, after it posted record deliveries on strong demand in China that helped it offset the impact of a global shortage in auto parts.

The stock jumped nearly 8 in premarket trading and it was on track to hit its highest in over a month.

The company said on Friday it was encouraged by the strong reception of its Model Y crossover in China and it was quickly progressing to full production capacity.

Analysts remained hopeful as despite a global chip shortage that has slammed the entire auto sector, various supply chain issues and rising competition, Tesla still managed to produce roughly the same amount of vehicles in the first quarter as in the fourth quarter.

At least three brokerages raised their price targets on Teslas stock. Brokerage Wedbush was the most aggressive, increasing it by 50 to 1,000, much higher than the median price target of 712.50, as per Refinitiv data. Wedbush also raised its rating to outperform from neutral.

Tesla is executing impeccably. I am not surprised by the strong deliveries, said Roth Capital Partners analyst Craig Irwin, even as he added that the stock is egregiously overvalued.

EVs are an exciting place to be, and Tesla is the leader.

Chief Executive Officer Elon Musks personal wealth has been boosted by a more than eightfold surge in the stocks value last year, even though its production is just a fraction of rivals such as…