Shares of Tesla (NASDAQ:TSLA) jumped on Tuesday, rising as much as 6.4%. As of 10:45 a.m. EST, the stock was up about 5%.
The stock's gain is likely fueled primarily by optimism in the overall market on Tuesday. In addition, the stock may be rising on the possibility of a Democrat winning the U.S. presidential election.
Capturing bullishness in the overall market, the S&P 500 is up about 2% as of this writing. Many growth stocks like Tesla are up even more. It's not surprising, therefore, to see Tesla stock up sharply.
Some of the accumulation of Tesla stock today may reflect the possibility of Joe Biden winning the election. Democrats typically implement more favorable renewable energy policies. As a maker of electric cars, solar panels, and energy storage products, Tesla could benefit from invigorated government support for these new technologies.
Investors should remain focused on Tesla's underlying business and the company's long-term potential. While whoever wins the election may have an impact on Tesla, the company's long-term fate will likely be determined primarily by the quality of its products and its execution on growth opportunities.