Tesla (TSLA Quick QuoteTSLA - Free Report) has been crowned the world’s most-valuable automaker – beating Toyota (TM Quick QuoteTM - Free Report) – as its stock has crossed the $1,000 a share mark. Tesla now sits on a market cap of $190.01 billion while Toyota’s market cap is now more than $182 billion. Tesla’s shares rallied about 9% on Jun 10.

Behind the Gains

Wedbush Securities analyst Dan Ives said he thinks it still has "room to run further" even after the stock reached his base-case price target to $1,000 per share from $800. His bull-case target surged to $1,500 from $1,350. China’s high demand would be instrumental in driving Tesla’s shares higher. Model 3 sales remain "a ray of shining light,” per the analyst.

According to the China Passenger Car Association, Tesla sold 11,095 of its made-in-Shanghai Model 3 electric sedans to China-based customers in May, more than triple the volume recorded in April, per Reuters. This shows that the COVID-19 impact on Tesla sales has been receding.

In 2019, Tesla amassed considerable government support to set up its Shanghai car factory. Local banks invested $1.6 billion in the manufacturing facility, Chinese authorities helped Tesla in securing permits to acquire the land seamlessly, and allowed it to operate the factory independently, without a local joint venture, Reuters noted.

With production ramping up and the China government helping Tesla by donating PPE products, Tesla’s Shanghai factory should report healthy production in the near term. The factory is on target to produce 150,000 vehicles this year.

Apart from the upbeat sales figure from China, there are other tailwinds for the stock. Chief Executive of Tesla Elon Musk told his staff to boost production of the Tesla Semi commercial truck. Investors also are anticipating that Musk will reveal the new “million-mile” battery technology that could deliver longer life, lower costs and better range, per Reuters.

The rollout of the new game-changing batteries will give Tesla an edge over other carmakers as many have started to dip their toes in electric vehicle production of late.

ETFs in Focus

Tesla currently has a Zacks Rank #1 (Strong Buy) and Growth Score of C. Investors intending to tap the latest rally in the stock may tap the following ETFs.

MicroSectors FANG+ ETN (FNGS Quick QuoteFNGS - Free Report) — Tesla accounts for about 12% share.

ARK Web x.0 ETF (ARKW Quick QuoteARKW - Free Report) — The fund holds 41 stocks in its basket, with Tesla occupying the top position at 10%.

ARK Autonomous Technology & Robotics ETF (ARKQ Quick QuoteARKQ - Free Report) — Tesla occupies the top spot with more than 10% share. 

First Trust NASDAQ Global Auto ETF (CARZ Quick QuoteCARZ - Free Report) — The fund invests more than 10% weight in Tesla.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>