Why Tesla Stock Jumped on Monday

One analyst thinks Tesla stock is headed to $1,200.

What came about

Shares of Tesla (NASDAQ:TSLA) are purchasing and selling increased this day. The electrical car maker’s stock jumped as mighty as mighty as 5.7%. As of 1 p.m. EST, alternatively, the stock was up 4.9%.

The growth stock‘s agree with is possible pushed by each and each an upbeat day for the final market and an analyst’s cross to bigger than double their 12-month imprint goal for Tesla shares.

Tesla Model S interior

The recently refreshed interior of Tesla’s Mannequin S. Describe provide: Tesla.

So what

Piper Sandler analyst Alexander Potter raised his 12-month imprint goal for Tesla shares to $1,200 on Monday. Here’s up from a outdated goal of $515. The “fireworks are no longer over” but for Tesla, the analyst acknowledged in some degree to to merchants.

Supporting his bullish leer for the stock, Potter thinks Tesla will assert 894,000 vehicles this twelve months, representing 79% twelve months-over-twelve months growth. 

Also serving to the stock this day is possible a bullish day for the final market. As of this writing, the Nasdaq Composite was up 2.5% and the S&P 500 was up 1.6%.

Now what

Potter’s forecast for 894,000 deliveries might perchance be very bullish. All Tesla acknowledged in its fourth-quarter shareholder letter about its expectations for 2021 deliveries was that it expects complete deliveries to develop at a twelve months-over-twelve months charge faster than 50%.


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.

 

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