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Why Tesla Stock Jumped Today

By Daniel Sparks – Jul 1, 2020 at 4:21PM

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Investors are buying up shares ahead of the electric-car maker's quarterly vehicle deliveries update.

What happened

Shares of electric-car maker Tesla (TSLA -4.59%) jumped on Wednesday, rising as much as 5.1%. By the time the market closed, however, the stock had settled to a 3.7% gain.

The growth stock's gain comes as one analyst expressed some optimism for Tesla's second-quarter deliveries, which the company will likely report anytime between now and Friday.

A red Model 3.

The Tesla Model 3. Image source: Tesla.

So what

Tesla saw a "very strong" end to its second quarter in vehicle deliveries, according to Wedbush analyst Daniel Ives. He believes deliveries rebounded in the U.S. and Europe during June, following a production pause at its factories due to the coronavirus. Furthermore, Ives thinks there is "massive" demand for Tesla cars in China. 

Now what

Since Tesla typically reports its quarterly deliveries within three days of its quarter-end, investors can expect an update from the company by July 3.

The electric-car company was originally expecting to deliver more than 500,000 vehicles in 2020. Though that forecast was made before the coronavirus led to temporary factory shutdowns. The upcoming report from Tesla may help investors determine whether the company's original guidance is still achievable.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

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