This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Shares of electric car company Tesla (NASDAQ: TSLA) surged higher on Monday. Shares were up about 5.7% as of 3:30 p.m. EDT.
The growth stock’s gain was fueled both by a bullish day in the stock market and news that Tesla has reportedly entered into an agreement with Luminar Technologies (NASDAQ: LAZR) for testing and development of Luminar’s laser-sensor technology.
So what
Highlighting why the overall market likely helped Tesla stock’s gain on Monday, the Nasdaq Composite was up more than 1.6% as of this writing – and many growth stocks like Tesla were up several percentage points or more.
Meanwhile, news that Tesla is reportedly open to testing the laser-sensor technologies for autonomous driving that CEO Elon Musk has previously heavily criticized may have investors more confident in the company’s long-term self-driving technology roadmap.
Though Tesla stock is up today, it’s still down about 14% year to date and 32% below its 52-week high.
Now what
Given the stock’s enormous run-up last year and its recent sharp decline, there’s likely plenty of volatility ahead for Tesla stock.
Investors, however, should remain focused on the company’s underlying business. Though Tesla’s sales are growing rapidly, the company is still heavily dependent on sales of zero-emission vehicle credits for much of its profitability. But management believes Tesla is on a path to eventually achieve industry-leading operating margins.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- Would you pay 10% more for a ‘green Bitcoin’?
- Why Ford couldn’t keep Tesla shares from popping today
- The Ampol (ASX:ALD) share price is rising on Tesla partnership news
- Crypto crash sends Bitcoin 30% lower to under US$40,000
- Technology, Toyota and The Big Short: The myriad problems with Tesla
The post Why Tesla stock jumped on Monday appeared first on The Motley Fool Australia.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
from The Motley Fool Australia https://ift.tt/34l8fy5
Leave a Reply