Tesla is jumping yet again, soaring 13% in early trading following a 19% surge on Monday

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GP: Elon Musk, chief executive officer of Tesla Inc., speaks during an event at the site of the company’s manufacturing facility in Shanghai, China, on Monday, Jan. 7, 2019.

Qilai Shen | Bloomberg | Getty Images

Tesla jumped again on Tuesday, smashing past the $800 level and set to open at a new record high as major shareholder Ron Baron forecast the company will top $1 trillion in revenue in a decade and as investors who bet against the stock scrambled to catch up.

The more than 12% surge comes after Tesla on Monday climbed 19.9%, its biggest one-day gain in six years. Tesla’s stock roared after Argus Research raised its price target to a new Wall Street high of $808 a share. But even Argus’ price target is below where the stock is set to open on Tuesday.

Tesla shares are up more than 80% this year through Monday’s close, fueled by analysts raising price targets to catch up to the stock and short-covering by investors betting against the shares. Analysts still can’t keep up with the run. The average 12-month price target of analysts is $493, up from $334 in December, according to FactSet. That new target is more than 40% below where the stock is trading in premarket trading Tuesday.

At the same time, short-sellers are scrambling with investors betting against the stock down more than $8 billion since the beginning of the year, according to S3 Partners. Since Tesla’s stock was under $200 a share in June, the firm said short sellers have covered $12.6 billion worth of stock. That’s a factor that is likely fueling Tesla’s current rally: If enough short sellers buy in tandem, it can create higher demand and itself drive the equity price even higher, a phenomenon also known as “a short squeeze.”

Ron Baron: Nowhere near the end

Ron Baron, founder of Baron Capital

Anjali Sundaram | CNBC

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