Tesla's first-quarter deliveries hit a record high, market value expected to exceed $50 billion

Teslaadded about $50 billion to its market value as its shares surged on Monday after the world's most valuable automaker reported record deliveries, overcoming a shortage of automotive chips.

Shares of the automaker were up nearly 8% in premarket trading, on track for their highest level in more than a month.

The electric car maker said on Friday it was encouraged by the strong reception of its Model Y crossover in China and that it was rapidly moving to full production.

JPMorgan analysts wrote in a note thatTesla's vehicle production capacity in the first quarter was roughly the same as in the fourth quarter, "outstanding relative to global trends in light vehicle production."

CEO Elon Musk's personal fortune has been boosted by a more than eightfold surge in the value of the stock last year, even though it produces a fraction of that of rivals such as Toyota, Volkswagen and General Motors.

At least three brokers raised their price targets onTeslastock.Brokerage Wedbush took the most aggressive move, raising its price target by $50 to $1,000, well above the median price target of $712.50 according to Refinitiv data.

Tesla delivered 184,800 vehicles globally in the first quarter of 2021, up from an estimated 177,822 vehicles, according to Refinitiv data.

Tesla shares closed at $713, while other electric car makers including NIO Inc, Workhorse Group and Xpeng Inc rose about 3%.

"Given China, Europe and the surge in demand for electric vehicles, the (electric vehicle) industry seems poised to get back on its feet, and Tesla'sdeliveriescould be the spark needed to start the next rebound," Advanced Analysis Teacher Jesse Cohen said.