What happened
Shares of electric car maker Tesla (TSLA -3.55%) jumped on Monday. The stock rose as much as 6.7%, putting the shares at all-time highs. As of 10:15 a.m. EDT, shares are up 4.5%.
The growth stock's gain is likely fueled by several things: price increases over the weekend for its flagship Model S and X vehicles, an analyst's move to hike his price target for the stock, and a big order of Tesla vehicles from rental car company Hertz (HTZG.Q).
Vehicle production at Tesla's factory in California. Image source: The Motley Fool.
So what
"As consumer interest in electric vehicles (EV) skyrockets, Hertz today is announcing a significant investment to offer the largest EV rental fleet in North America and one of the largest in the world," Hertz said in a press release Monday morning. The company's initial order for electric vehicles includes "100,000 Teslas by the end of 2022," Hertz said.
Hertz shares soared on the news. The stock is up more than 9% as of this writing.
Meanwhile, Morgan Stanley analyst Adam Jonas increased his 12-month price target on Tesla shares from $900 to $1,200. His bullishness stems from a view that the company may achieve significant manufacturing achievements over the next 12 months in terms of both volume and costs.
Finally, Tesla's move over the weekend to increase the price of the long-range versions of its Model S and X vehicles by $5,000 each highlight the company's pricing power.
Now what
Tesla recently reported strong third-quarter results. There could be more analyst upgrades ahead as investors digest the company's impressive performance.
In its third-quarter shareholder letter, Tesla said it still expects to grow its deliveries by more than 50% this year despite a difficult global operating environment.
