What happened

Shares of Tesla (TSLA -1.80%) popped on Monday, with shares rising as much as 8.5%. As of 10:17 a.m. EDT, the stock was up 7.3%

The electric-car maker's move higher was likely primarily fueled by a big jump in the overall stock market today. But an upgraded rating and increased price target for Tesla stock from an analyst probably helped, too.

A red Model 3

A Tesla Model 3. Image source: Tesla.

So what

Highlighting the market's rise on Monday, the S&P 500 was up 4.8% at the time of this writing. The market may be rebounding from last week's sell-off and from the overall market decline since mid-February. Furthermore, some investors may be encouraged by signs of progress on slowing the spread of the coronavirus; daily death rates from COVID-19 declined for the first time in New York State on Sunday, coming in at 594 versus 630 on Saturday. 

Meanwhile, Jefferies analyst Philippe Houchois increased his 12-month price target for Tesla shares from $650 to $800 and changed his rating on the stock from hold to buy. Some of the catalysts he cited for the company included stable average selling prices, sales of zero-emission vehicle credits, and "a positive [electric vehicle] sum-game."

Now what

Tesla recently reported better-than-expected first-quarter deliveries. While its 40% year-over-year increase in deliveries during the period was impressive, it was just as notable that Tesla didn't withdraw its full-year outlook when it released its latest numbers. The company is still apparently aiming to deliver more than 500,000 vehicles this year, up from about 368,000 in 2019.