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Tesla adds $37bn in value as Wall Street soars

Wall Street began the week with the Dow Jones and S&P 500 hitting record closing highs and electric-vehicle maker Tesla adding an astonishing $37 billion in market value.

Shares in Tesla soared 5% as investors backed firms likely to benefit from President Joe Biden’s $2 trillion post-Covid rebuilding plan.

Investors responded eagerly to the firm’s announcement on Friday that it delivered nearly 185,000 vehicles in the first quarter—beating its previous record of 180,570 deliveries in the fourth quarter and exceeding analyst expectations by about 10%.

Wedbush analyst Dan Ives upgraded Tesla to outperform and gave it a $1,000 price target, indicating he believes shares could surge another 43% over the next year. Edinburgh-based Baillie Gifford was an early backer of the firm.

The Dow Jones Industrial Average rose 373.98 points, or 1.13%, the S&P 500 gained 58.04 points, or 1.44%, and the Nasdaq Composite added 225.49 points, or 1.67%.

Investors cheered strong jobs data and looked for a report on the services sector with signals that 2021 could see the best annual economic growth in nearly four decades.

Friday’s employment report showed the economy added 916,000 jobs last month.

Treasury Secretary and former Fed chairman Janet Yellen was due to deliver her first major speech since joining the Biden administration. 

She was expected to confirm she is working with G20 countries to agree on a global corporate minimum tax rate to end a “30-year race to the bottom on corporate tax rates.

Ahead of addressing the Chicago Council on Global Affairs, Ms Yellen said she would use her participation in International Monetary Fund and World Bank annual meetings this week to advance discussions on climate change, improve vaccine access and encourage countries to support a strong global recovery.

Oil prices fell as increasing OPEC+ supply and rising Iranian output, along with the threat of a new wave of COVID-19 infections, offset hopes for a demand rebound driven by economic revival.

US crude settled at $58.65 per barrel, down 4.6% on the day, while Brent shed 4.18% to end at $62.15 per barrel.

Markets in Europe were closed for the Easter holiday.