What happened?

Shares of Tesla (NASDAQ:TSLA), a vertically integrated energy company best known for its electric vehicles, closed with a 5.6% gain, in part because investors felt more optimistic about production.

So what

One problem Tesla has never faced is a lack of consumer hype for its highly popular electric vehicles, including the Model 3. Tesla has consistently had trouble hitting its production targets. And while Tesla has had Model 3 production bottlenecks, which contributed to a small sell-off in the stock in mid-February, Morgan Stanley analyst Adam Jonas, said Friday that he believed the company would overcome bottleneck issues and improve production -- boosting cash flow and investor optimism.

Model 3 production will be one of the hottest Tesla topics for investors to watch in 2018, and it's not a huge surprise to see the stock rise after analysts become confident that the production bumps are in the past.

Tesla's Model 3 driving on a deserted road.

Image source: Tesla.

Now what

Tesla is one of the most closely watched, hyped, and highly discussed stocks in recent history. There's no limit to the speculation or news coverage, and 5% swings in its stock price are just part of owning shares in such a potentially lucrative stock with a long-term vision. On the road ahead, expect many more swings as global automakers launch highly competitive and comparable electric vehicles, as well as when Tesla hits, and misses, the lofty targets it sets for itself. Stay focused on the long-term Model 3 production, and everything should be just fine.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.