Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Shares Surged This Week

By Daniel Sparks - Jun 24, 2021 at 2:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The electric-car maker's stock has seen double-digit gains this week.

What happened

Shares of Tesla (TSLA 3.10%) have surged this week, rising more than 10% as of this writing. At one point during the week, the electric-car maker's shares were up a total of 11.9%.

The stock's sharp move higher has been fueled by a combination of factors, including volatile Bitcoin trading, news that the automaker may open its charging network to other automakers next year, and an upbeat week for growth stocks like Tesla.

A blue Model Y.

Model Y. Image source: Tesla.

So what

The latest news that may have benefited Tesla stock came on Thursday morning, when electric-car news website Electrek reported that Tesla is in talks with Norwegian officials to open up its Supercharger network to other automakers in the country. This follows a rumor last week that Tesla was considering opening up its fast-charging network in Germany. Not only could sharing its extensive charging network create a new revenue stream for Tesla but it could also draw more attention to electric cars overall, speeding up their adoption from consumers.

A rebound in Bitcoin after a sharp sell-off on Tuesday may have also played a role in Tesla stock's rise this week -- particularly on Wednesday. The automaker has purchased $1.5 billion worth of the cryptocurrency and it plans to hold its stake for the long haul. This stake in Bitcoin sometimes causes some volatility in the price of Tesla stock when Bitcoin trades sharply higher or lower.

Finally, many growth stocks rose several percentage points or more as Wall Street starts to warm up to these companies' shares after many of them were sold off sharply earlier this year. This market trend is likely helping Tesla stock.

Now what

In the meantime, Tesla is wrapping up its second quarter. Investors are likely hoping Tesla can deliver more vehicles than ever before in Q2 as the company strives to hit its guidance to grow total 2021 deliveries more than 50% year over year.

Investors should get an update on the period at some point during the second half of July, when Tesla usually reports its second-quarter results.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$927.96 (3.10%) $27.87

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.