Tesla shares jump after Musk says company may have ‘a record quarter on every level’

Tesla shares rose on Wednesday after CEO Elon Musk said that he believes the electric automaker has adecent shot at a record quarter on every level.

I want to be clear: There is not a demand problem, Musk said at the companys annual meeting with shareholders on Tuesday evening. Sales have far exceeded production and production has been pretty good so were actually doing well.

Tesla shares jumped 4% in premarket trading Wednesday. Musk also saidit wont be long before the company has an electric car with a range of 400 miles.

Cowen questioned Musks confidence in a note to investors after the meeting, sayingbasic microeconomic theory would suggest that goods or services that dont have a demand problem dont see their prices lowered by half a dozen times in 4-5 months. Cowen has an underperform rating and a $140 price target on Tesla shares.

Baird, on the other hand, saidthe narrative is overly negative around Tesla, adding that it thinks Bear arguments will be disproven in the coming weeks and months. Baird has a $340 price target and an outpeform rating on the stock. The firm said there have been several signs of steady demand over the past few weeks, a point Musk emphasized during the presentation. Musk said that 90% of Teslas orders are coming from non-reservation holders, so these are new customers, he said.

Teslas stock is down nearly 35% for the year as of Tuesdays close of $217.10 a share but the stock has slowly come back after hitting a low of $179 a share last week.

A key metric for Tesla sales bounced back last month, as the companys Model 3 vehicle saw deliveries higher than expected in May. Overall,ÂTesla increased total U.S. sales in the month of May by 73% compared to last year, according to data from Motor Intelligence.

We continue to see the shares in a tug of war between skeptics and extreme believers, where we have fallen into the skeptical camp for several years, Cowen said.