Tesla bulls are on a rampage after a blockbuster earnings beat.

The electric vehicle manufacturer announced that it can comfortably deliver 500,000 units this year.

The earnings beat and strong 2020 guidance drove Wedbush to put a price target of $900 for TSLA.

Investors were worried heading into Tesla’s (NASDAQ:TSLA) latest earnings call. The stock had more than doubled in the last six months, so the car maker needed a blockbuster earnings call to justify its over $100 billion valuation. Tesla did not disappoint.

The company beat earnings expectations. On top of that, it delivered a strong 2020 guidance that showed its ability to boost production as well as demand.

Tesla Exceeds Expectations

Tesla is up big in after hours trading after announcing it beat consensus estimates. The most valuable car company in the U.S. printed an earnings per share (EPS) of $2.14 on revenue of $7.4 billion. Tesla’s fourth-quarter EPS topped Wall Street expectations of $1.62 per share by over 32%. In terms of revenue, the company surpassed estimates of $6.95 billion by more than 7%.

Tesla gave investors reason to rejoice after announcing that the company can comfortably deliver 500,000 units. In an article that I published this week, I noted that Tesla must provide a delivery guidance of over 500,000 units to justify its astronomical value. That’s exactly what Tesla did and now its stock is surging.

Wedbush Slaps a Price Target of $900

Wedbush, a financial services and investment firm, is one of the biggest bulls of the EV company. Their analyst Dan Ives explained,

We believe the China opportunity is worth at least $100 per share ($300 in a bull case scenario) and potentially more and remains the key fuel in the growth engine along with Europe Model 3 demand.

With the release of a strong earnings report, Wedbush has turned ultra bullish on Tesla. Ives emphasized that Tesla now has the capacity to manufacture 500,000 units for the 2020 fiscal year. In addition, the analyst said that demand in China can ramp up deliveries to one million in 2022, which is two years ahead of previous projections.

Based on the company’s ability to ramp up production and demand, Wedbush’s price target has been lifted to $900 from $550.

Tesla's strong Q4 puts 'fuel in the engine' toward possible US$900 price target: Wedbush's Daniel Ives https://t.co/TE21yvQsYR pic.twitter.com/oWYd0d0Ftm — BNN Bloomberg (@BNNBloomberg) January 29, 2020

At Wednesday’s close, TSLA traded at $580.99. The stock added on to its gains in after-hours trading as it skyrocketed above $650.

It appears that Tesla’s bull rally is showing no signs of stopping anytime soon. If Wedbush is correct, the stock can soar as high as 54% from Wednesday’s close.

Disclaimer: The above should not be considered trading advice from CCN.com. The writer does not own shares of Tesla (TSLA).