Shares of electric-car maker Tesla (NASDAQ:TSLA) jumped on Monday, rising as much as 5.2%. As of 11:22 a.m. EDT, however, the stock was up about 2%.
The growth stock's gain was likely primarily fueled by a bullish day for the overall market as investors reacted to election news and reports of successful human trials for a COVID-19 vaccine.
Not only could Tesla benefit from potentially more favorable green energy policies under Joe Biden's presidential administration, but a vaccine for COVID-19 would likely help mitigate some of the risks of the company's factories shutting down again, as they did during peak business lockdowns earlier this year.
Furthermore, if vaccines can successfully begin reducing the spread of COVID-19 next year, this could help the economy and possibly lead to more incremental demand for Tesla's vehicles.
Earlier this year, Tesla suspended its guidance for more than 500,000 vehicles in 2020 as factory shutdowns translated to significant uncertainty about how the year would play out. But with quarterly deliveries recently surging to record highs, the automaker is now once again guiding for a half-million deliveries, up from about 368,000 last year.