Send me real-time posts from this site at my email
Motley Fool

Why Tesla Stock Jumped Tuesday

What happened

Shares of Tesla (NASDAQ: TSLA) jumped on Tuesday, rising 6.5% as of 11:10 a.m. EST.

The gain follows one analyst's decision to significantly increase his 12-month price target for the stock based on the company's recent execution and his expectations for more sharp sales growth from the electric-car company in the coming years.

Image source: The Motley Fool.

So what

New Street analyst Pierre Ferragu gave Tesla stock an $800 12-month price target on Tuesday. This is up from his previous 12-month price target of $530. Supporting the stock's 80% gain over the last year has been the company's "technological dominance, strong sustained demand, Tesla's ability to execute," said Ferragu in a note to investors.

Looking ahead, Ferragu thinks Tesla's annual deliveries can increase from a run rate of about 450,000 today to 2 million to 3 million units by 2025. In addition, the analyst believes the company will boast "industry leading margins."

Now what

Tesla stock's wild gain recently means investors will be watching closely when the automaker reports fourth-quarter results on Jan. 29. Investors will be looking for another profitable quarter and guidance for more strong growth in deliveries in 2020.

Find out why Tesla is one of the 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

Tom and David just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

*Stock Advisor returns as of December 1, 2019

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


Source

Popular posts

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue