Why Tesla stock jumped on Tuesday

The electric car maker's stock is rebounding a bit. But it's still down substantially from recent highs.

| More on:
the interior of a Tesla car with its distinct computer screen style display with a grey sky outside the car windows

Image source: Getty Images

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The Tesla (NASDAQ: TSLA) share price jumped on Tuesday, rising about 3.5% as of 2:30 p.m. ET.

The stock's gain was likely primarily driven by an upbeat day in the overall market -- especially for growth stocks like Tesla.

So what

Capturing optimism in the overall market on Tuesday, the S&P 500 was up 1.5% at the time of this writing. The tech-heavy Nasdaq Composite, however, was up more than 2.1%. Many growth stocks like Tesla were up several percentage points or more, rebounding some from a sharp sell-off earlier this month.

Tesla stock's gain today represents a bit of a rebound from a steep sell-off recently. Even including today's gain, the stock has slid 25% from a high of more than $1,243 just a few months ago.

Now what

As the year wraps up, Tesla investors have the company's fourth-quarter vehicle deliveries to look forward to. While the challenging global supply chain and logistics environment that Tesla is operating in makes it difficult to forecast the quarter, analysts are expecting record deliveries during the period. But a wide range of outcomes is possible.

Tesla delivered 241,391 vehicles in its third quarter, representing 73% year-over-year growth. For the current quarter, analysts generally expect 260,000 or more deliveries. This would put total deliveries for the year at over 887,000 -- far higher than the 500,000 vehicles the company delivered in 2020.

The company usually posts its quarterly deliveries within three calendar days of each quarter's end, or somewhere around 1-3 January for Tesla's Q4.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

More on International Stock News

A man looking at his laptop and thinking.
International Stock News

Why Alphabet stock was sliding today

Let's take a look.

Read more »

A man looking at his laptop and thinking.
International Stock News

Nvidia's stock was down despite its amazing earnings. Here's what history says is coming next

Although it might seem to defy logic, it's not an uncommon phenomenon.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Nvidia share price slips despite 94% revenue growth

Q3 earnings beat expectations, but what about guidance?

Read more »

high, climbing, record high
International Stock News

Could the S&P 500 Index hit 6,500 by the end of 2025?

Could the index climb higher?

Read more »

a small child holds his chin with his head on the side in a serious thinking pose against a background of graphic question marks and a yellow lightbulb.
International Stock News

Is it too late to buy Nvidia shares?

Is Nvidia stock a buy ahead of its third-quarter earnings report tomorrow?

Read more »

a group of people stand examining a large glowing cystral ball held in the hands of one of the group members while the others regard it with various expressions of wonder, curiousity and scepticism.
International Stock News

Here's what to expect from Nvidia on November 20

Can Nvidia score another win?

Read more »

Two people lazing in deck chairs on a beautiful sandy beach through their hands up in the air.
International Stock News

2 no-brainer Warren Buffett stocks to buy right now

While replicating Buffett's success isn't possible, there are a handful of his investments that are no-brainer buys.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
International Stock News

3 reasons to buy Nvidia stock before November 20

This week marks a big moment for tech investors as perhaps the most anticipated earnings of the year will be…

Read more »