Shares of electric car and green energy company Tesla (TSLA 1.24%) soared on Tuesday. As of 3:42 p.m. EDT, the stock was up by about 7.8%
The stock was likely trading higher due to a combination of the market's upbeat mood regarding growth stocks and some recent optimistic notes about the company from analysts.
Many tech stocks were trading higher on Tuesday, with the tech-heavy Nasdaq Composite up by 1% as of this writing. And a number of growth stocks like Tesla, however, were up several percentage points or more. Broadly speaking, growth stocks seem to be rebounding from the steep sell-off they experienced in the second half of February and early March.
Meanwhile, Credit Suisse analyst Dan Levy released earnings per share estimates for Tesla's first quarter that were ahead of the current average analyst forecast for the period. Levy also noted that he believes the company's vehicle deliveries in 2021 could be higher than expected. He's forecasting 929,000 deliveries this year, up from about 500,000 in 2020.
This bullish take on Tesla's business added weight to another analyst's optimistic remarks Monday.
Tesla is rapidly building out its production capacity this year for both its vehicles and its battery cells. For now, demand seems to be growing in line with that rapidly increasing production. Investors, however, should watch to see if this remains the case throughout the year.
Management has guided for vehicle deliveries in 2021 to grow by more than 50%.