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

Why Tesla Stock Jumped on Friday

What happened

Shares of electric-car maker Tesla (NASDAQ: TSLA) moved higher on Friday, climbing more than 3%. Trading at over $843 at market close, the stock is only 6% off its 52-week high.

The growth stock's gain was likely fueled both by an upbeat day in the overall market and an analyst's increased price target for the shares.

Image source: Getty Images.

So what

On Friday, Jefferies analyst Philippe Houchois boosted his price target for Tesla stock from $850 to $950. In addition, he reiterated a buy rating. The price target represents more than 11% upside from where the stock traded at market close on Friday.

The enhanced view for shares reflects a more optimistic forecast for Tesla's earnings before interest and taxes in 2022 and 2023 based on sales momentum and efforts to further scale its manufacturing with new factories.

More importantly, Houchois believes legacy automakers are failing to close the gap on Tesla's lead.

Also likely helping Tesla stock on Friday was an upbeat day for the overall market. The S&P 500 rose 0.75%.

Now what

Investors will get more insight into the company's momentum when it reports its third-quarter results, scheduled for Wednesday, Oct. 20. With deliveries jumping 73% year over year during the period, the automaker's top- and bottom-line growth will likely be impressive, too.

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

Our award-winning analyst team has 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.*

They 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 September 17, 2021

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.


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