Shares of electric-car maker Tesla (NASDAQ:TSLA) jumped on Wednesday, rising 6.6% by the time the market closed.
The stock's gain was driven by a sharp rise in the overall market and even steeper gains for many growth stocks like Tesla.
The S&P 500 rose 2.3% on Wednesday as crude oil prices stabilized. The beginning of earnings season also highlighted solid first-quarter performances from several high-profile companies, easing some concerns about the impact of the coronavirus on growth stocks, and reinforcing the market's optimism for some industries that may have benefited from consumers sheltering at home.
Netflix (NASDAQ:NFLX) added an impressive 15.8 million paid members; Chipotle's (NYSE:CMG) 81% year-over-year growth in digital sales helped fuel a 7.8% jump in revenue; and Snap (NYSE:SNAP) reported 44% year-over-year growth in revenue, which was primarily from advertising.
Many growth stocks saw outsize gains on Wednesday, recovering from a beating earlier this week. Their rebound highlights growing confidence on the Street for growth stocks during these uncertain times. Tesla, with its 41% growth in trailing-12-month vehicle deliveries, is as pure of a growth stock as they come -- and it didn't miss out on the market's appetite for growth on Wednesday.
Tesla investors may be hoping for a possible reopening of the company's factories in the coming weeks as daily new coronavirus cases are stabilizing and even declining in some states.
Investors will get more information on how Tesla's business has been impacted by COVID-19 when the automaker reports its first-quarter results on April 29.