The stock's gain follows a report that Tesla's deliveries of the made-in-China version of its Model 3 jumped to a record high in China during May.
Sales of the made-in-China Model 3 more than tripled compared to sales in April, according to data from the China Passenger Car Association. Total May sales of the vehicle came in at 11,095, up from 3,645 in April and 10,160 in March, according to the data.
Investors are likely hoping deliveries of the China-made Model 3 could grow to represent a meaningful portion of sales in 2020, particularly since the Shanghai-based factory reopened before Tesla's factory in California. It's not surprising, therefore, to see investors cheering Tesla's return to Model 3 sales growth in the important market.
For the full year of 2020, Tesla was initially aiming for total vehicle deliveries to exceed 500,000 units, up from 368,000 deliveries in 2019. But the automaker refrained from reiterating this guidance in its first-quarter update as uncertainty surrounding COVID-19 loomed. If deliveries in China keep ramping up, the automaker will have a better shot at getting close to its original sales forecast for the year.