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 Tesla (NASDAQ: TSLA) jumped on Wednesday, climbing 3.6% by the time the market closed. The move extends the stock’s recent bullish momentum.
While there was no specific reason for the growth stock‘s gain on Wednesday, shares have been generally trending upward lately. This could be a continuation of that trend. In addition, it was an upbeat day for the overall market, with the S&P 500 and the Nasdaq climbing about 0.7% and 1%, respectively.
So what
Highlighting Tesla stock’s momentum recently, shares have surged 71% over the past three months and 57% in the last 30 days alone. With so much momentum, it’s not surprising to see shares trading higher again. Of course, investors shouldn’t count on this near-term momentum to continue. Any pullback after such a staggering run-up could be sharp.
Tesla’s third-quarter momentum has had many analysts recalibrating their models for the stock higher. The company has made significant progress in manufacturing, sales, and profitability — even during a challenging operating environment. Third-quarter vehicle deliveries increased 73% year over year to more than 241,000, and management said it was able to achieve an annualized production run rate of more than 1 million cars by the end of the quarter.
Now what
The downside to a soaring stock price, of course, is that expectations are increasing. This means investors expect Tesla’s impressive business momentum to persist. Looking ahead, investors will want to look for the company to continue growing deliveries and profitability.
Fortunately, management seems to think Tesla is just getting started. In its third-quarter shareholder update, the company guided for 50% annual growth in deliveries over “a multi-year horizon.”
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Why Tesla stock jumped on Wednesday appeared first on The Motley Fool Australia.
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More reading
- Why Tesla stock jumped on Thursday
- Why Tesla stock revved even higher on Tuesday
- Why is the Liontown (ASX:LTR) share price roaring 5% higher today?
- Why ASX 200 tech shares are leading the charge higher today
- Why ASX lithium shares are surging higher on Tuesday
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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