Tesla Inc. stock rose nearly 10% Wednesday, a day after shareholders bestowed their latest vote of confidence on the Silicon Valley car maker and its Chief Executive Elon Musk.
Tesla TSLA, +9.74%[1] shares advanced 9.7%, their biggest percentage gain since Nov. 4, 2015, to end at $319.50, their best close since March 16. The shares were the best performer on the Nasdaq 100 on Wednesday.
Related: Opinion: Tesla investors missed opportunity to hold Elon Musk & Co. accountable[2]
Shareholders late Tuesday approved all the company proposals at Tesla’s annual meeting, eschewing calls to reject the reelection of three members of the board of directors with close ties to Musk and to strip Musk of his chairman role.
Musk said that it is “quite likely” Tesla will make good on its goal to produce 5,000 Model 3 sedans by the end of June, that the company will be GAAP profitable and will achieve positive net flow in the second half of the year, and it will not need to tap capital markets to shore up its finances.
See also: Tesla on track to make 5,000 Model 3s a week by end of June, Musk says[3]
Even Musk’s body language during the meeting was “positive,” analysts at Baird said in a note Wednesday. Tesla “will be able to achieve sustainable operating cash flow and operating profit in the intermediate-term, which would be a significant catalyst,” they said.
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The Baird analysts kept their rating on the stock at the equivalent of buy, and stuck with a $411 price target on the stock. Wall Street on average has a hold rating on Tesla and a price target around $311, which represents a 0.8% gain over Wednesday prices.
Read more: Latest Wall Street view on Tesla is a cautious one[4]
Tesla’s shareholder meeting didn’t bring much surprise, but “it was still positive,” said Efraim Levy, an analyst with CFRA.
“We remain skeptical about sustainable Q3 and Q4 positive cash and still anticipate a capital raising event for the 2019 first quarter,” he said.
Musk also said Tesla could announce detailed plans for a factory in China for building cars and batteries “as soon as next month,” and that the Model Y, expected to be a compact SUV, would be ready to be unveiled next year and produced in the first half of 2020.
Tesla shares have lost 13% in the past 12 months, but are up more than 15% in the quarter. In contrast, the S&P 500...