Shares of electric car maker Tesla (TSLA 3.64%) jumped on Tuesday, rising as much as 4.4%. As of 11:50 a.m. ET, however, the stock was up about 3%.
The move higher was likely driven both by an upbeat day in the overall stock market and an analyst's move to hike his price target on the stock.
Highlighting the market's momentum on Tuesday, the S&P 500 was up more than 2% as of this writing. But many growth stocks like Tesla were up even more than the S&P 500 as they rebounded from a sell-off last week.
Also likely helping the stock on Tuesday was UBS analyst Patrick Hummel's increased confidence in the company's shares. Hummel lifted his 12-month price target on the stock from $725 to $1,000, noting that the electric car maker is poised to continue beating analyst expectations for its revenue and profit margins. An accelerating global electric vehicle market and Tesla's structural advantages when it comes to chips and batteries (thanks to vertical integration) are important catalysts for the company, Hummel notes.
The stock's move higher puts shares back over $1,000 -- a level that is notably above Hummel's 12-month price target. This explains the analyst's neutral rating for the stock. In addition, it coincides with the market's recent challenges when it comes to deciding whether or not Tesla stock is a good buy at this level.