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Why Tesla Stock Jumped on Monday

By Daniel Sparks – Aug 3, 2020 at 1:26PM

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Shares of the electric car company are topping $1,500 again.

What happened

Shares of Tesla (TSLA 2.90%) jumped on Monday, rising as much as 5.5%. As of 1:23 p.m. EDT, the stock was up about 5%.

The stock's gains came as the overall stock market was trending higher on the day.

A chart showing a stock price rising

Image source: Getty Images.

So what

Better-than-expected quarterly results from tech stocks Apple, Facebook, and Amazon last week sent their shares sharply higher and drove optimism in the overall market, and that broad momentum seems to be persisting. As of this writing, the S&P 500 is up 0.8% Monday, and many growth stocks are up by several percentage points or more.

This behavior isn't abnormal for Tesla stock based on its patterns in recent months. Shares of the electric car maker have been exceptionally volatile this year as traders have piled into the stock, betting it will continue to grow rapidly and solidify its leadership within its nascent market.

Now what

In the second half of 2020, investors will be watching to see whether Tesla can continue impressing investors. The automaker is expanding rapidly, building a factory near Berlin, Germany, and recently announcing plans for another factory in Austin, Texas. In addition, Tesla began deliveries of its newest vehicle in March -- the Model Y SUV.

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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