Why Tesla Stock Soared Higher on Tuesday

Motley Fool2021-04-14

One analyst thinks Wall Street is underestimating the electric automaker's earnings per share potential.

What happened

Shares of electric car and green energy company Tesla (NASDAQ:TSLA) soared 8.6% on Tuesday.

The stock was likely trading higher due to a combination of the market's upbeat mood regarding growth stocks and some recent optimistic notes about the company from analysts.

TESLA FACTORY. IMAGE SOURCE: THE MOTLEY FOOL.

So what

Many tech stocks were trading higher on Tuesday, with the tech-heavy Nasdaq Composite up by 1% as of this writing. And a number of growth stocks like Tesla, however, were up several percentage points or more. Broadly speaking, growth stocks seem to be rebounding from the steep sell-off they experienced in the second half of February and early March.

Meanwhile,Credit Suisse analyst Dan Levy released earnings per share estimates for Tesla's first quarter that were ahead of the current average analyst forecast for the period. Levy also noted that he believes the company's vehicle deliveries in 2021 could be higher than expected. He's forecasting 929,000 deliveries this year, up from about 500,000 in 2020.

This bullish take on Tesla's business added weight to another analyst's optimistic remarks Monday.

Now what

Tesla is rapidly building out its production capacity this year for both its vehicles and its battery cells. For now, demand seems to be growing in line with that rapidly increasing production. Investors, however, should watch to see if this remains the case throughout the year.

Management has guided for vehicle deliveries in 2021 to grow by more than 50%.

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Comments

  • JO87
    2021-04-15
    JO87
    EV EV
  • RonnieSG
    2021-04-14
    RonnieSG
    Good now that they see the potential to move towards the critical $1000 point, it will cause another uptrend as the market moves higher due to the re-opening of the economy and stimulus spending. More people will be replacing their ICE cars with EVs as the charging infrasture ramps up with Biden’s plan. Way to go, Tesla. Up Up and Up
  • AnthonyC
    2021-04-14
    AnthonyC
    Like and comment please! Also, Tesla to the moon!
  • Xismal
    2021-04-14
    Xismal
    like and comment please, thanks
  • 0421catcat
    2021-04-14
    0421catcat
    Because there are more good news
    • Kikiooi: 
      Green energy and electric Vehicles will be in demands inkine v Global Sustainabilty drives
  • VinodSarma
    2021-04-14
    VinodSarma
    Cheers!
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