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Why Tesla Stock Soared Monday

By Daniel Sparks – Updated Jul 20, 2020 at 2:04PM

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The electric-car maker's stock resumed its momentum ahead of its earnings report on Wednesday.

What happened

Shares of electric-car company Tesla (TSLA -6.81%) jumped on Monday, rising about 9% as of 1:40 p.m. EDT today.

The stock's gain was likely helped by an overall bullish day on the market, particularly for growth stocks like Tesla, many of which were up several percentage points or more on Monday. In addition, some investors may be buying the stock ahead of Tesla's earnings report this week, hoping the company will report better-than-expected results, potentially driving shares higher.

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

Image source: Tesla.

So what

Tesla has already reported vehicle deliveries for its second quarter that blew past analyst estimates. The company delivered approximately 90,650 vehicles during the period. While this was down from about 95,000 in the year-ago period, it was an impressive figure considering the company's main factory was shut down for the first half of the quarter.

The stock has surged over the last 12 months, with momentum continuing since the company announced its second-quarter deliveries earlier this month. But shares pulled back slightly from all-time highs last week, though they are still up significantly month to date. Today, however, the growth stock's torrid move higher seems to have resumed.

Now what

Going into Tesla's second-quarter earnings report on Wednesday, analyst views are mixed on whether the company will report a profit. On average, however, analysts currently expect an adjusted loss per share of $0.11 from the company. 

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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