Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Jumped Again Monday

By Daniel Sparks – Jul 13, 2020 at 12:06PM

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

After crossing $1,500 last week, shares are already nearing $1,800.

What happened

Another day, another new high for Tesla (TSLA 1.49%) stock. Shares of the electric-car maker soared as much as 16.2% on Monday. As of 11:50 a.m. EDT, the stock was up about 12%. This puts shares up more than 600% over the past 12 months and over 300% year to date.

Shares of the growth stock are likely up for a combination of reasons, including building on last week's momentum, speculation that the stock will soon be included in the S&P 500 index, and analyst commentary about the company's upcoming Battery Day event.

Tesla's Model S, X, 3, and Y

Image source: Tesla.

So what

Last week, Tesla shares jumped on news that the stock may soon be included in the S&P 500. This could be fueling further gains on Monday as some investors bet that the stock's inclusion in the index will lead to more demand for the stock.

Now shares may be getting an additional lift from an analyst note saying that the company's Battery Day event on Sept. 22 could be "a major positive catalyst" for Tesla stock. The note comes from Wedbush analyst Daniel Ives, who also believes the automaker could report a fourth quarterly profit in a row. Tesla has repeatedly delayed its battery event, where the company is expected to reveal some news about recent developments in its batteries. But with the date of Tesla's battery event now officially announced in a press release, and given that the event will take place in conjunction with its annual shareholder meeting on the same day, the event seems unlikely to be delayed again.

Now what

Tesla stock's wild run-up has been borderline surreal. The company is now one of the 10 largest companies in the U.S. by market value, with a $325 billion market capitalization.

With such big gains for Tesla stock in the rearview mirror, investors will be watching the company closely when it reports second-quarter results on July 22. 

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.

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
$246.00 (1.49%) $3.60

*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
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

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.