Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Jumped Monday

By Daniel Sparks – Jun 10, 2019 at 11:49AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two analysts think Tesla stock is a buy.

What happened

Adding to the stock's bullish run last week, shares of Tesla (TSLA 0.91%) shot higher on Monday, rising nearly 6% as of 11:15 a.m. EDT.

The stock's sharp increase on Monday comes amid two optimistic notes from analysts. One reiterated a buy rating, and the other upgraded his rating on the stock from neutral to buy.

Tesla's Model S, 3, X, and Y

Image source: Tesla.

So what

Baird analyst Ben Kallo, who reiterated a buy rating and a $340 price target for the stock, said Tesla is likely on track to meet its delivery volume guidance for its second quarter -- an outcome he believes will send the stock higher.

Tesla guided for 90,000 to 100,000 deliveries in Q2. The midpoint of this guidance range implies 133% and 51% year-over-year and sequential growth in deliveries, respectively.

Meanwhile, Roth Capital Partners analyst Craig Irwin upgraded his rating for the stock from neutral to buy, citing strong demand for Tesla's vehicles in China.

Now what

For the full year, Tesla expects to deliver 360,000 to 400,000 vehicles -- up from about 246,000 last year. But investors will need to see robust second-quarter deliveries from the automaker to believe these figures are achievable.

Daniel Sparks owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.