Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Jumped (Again) Wednesday

By Daniel Sparks - Jan 22, 2020 at 11:48AM

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

Shares are up more than 140% over the past four months.

What happened

Shares of Tesla (TSLA -0.32%) are rising again on Wednesday, extending an extraordinary climb for the stock recently. Including the stock's intraday 6.4% gain as of 11:15 a.m. EST on Wednesday, shares are up more than 140% over the past four months.

The stock's sharp gain on Wednesday follows yet another analyst's decision to increase his 12-month price target for the electric-car maker's stock ahead of earnings on Jan. 29.

A red Tesla Model 3

Model 3. Image source: Tesla.

So what

Wedbush analyst Daniel Ives said in a note to investors on Wednesday that he believes the company's fourth-quarter earnings and its guidance for vehicle deliveries will not disappoint investors when Tesla reports results later this month.

He believes there's robust demand for vehicles in China and Europe. Further, he is particularly bullish on the company's opportunity in China following the start of production at the company's Shanghai factory earlier this year. The opportunity for Tesla in the China market is worth $100 to $300 per share, Ives estimates.

The analyst boosted his price target for the stock to $550 -- up from a $370 price target previously. The analyst has a neutral rating on the stock.

Now what

In addition to reporting its financial results for its fourth quarter on Jan. 29, Tesla will also likely provide guidance for vehicle deliveries in 2020. The automaker saw deliveries rise 50% year over year in 2019, and investors are expecting more sharp growth this year.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$734.76 (-0.32%) $-2.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

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