Insights

Why Tesla stock popped Monday

Analyst support is growing after last week’s strong second-quarter earnings report
The post Why Tesla stock popped Monday appeared first on The Motley Fool Australia. –

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

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

What happened

Tesla Inc (NASDAQ: TSLA) reported record earnings last week, and the stock has climbed higher ever since. Shares got another boost today with an analyst price target increase as well as hopes the company’s China business will follow results released by domestic competitors today. At the closing bell on Monday (US time), Tesla shares had jumped about 3% from Friday’s closing price.

So what

Tesla sold more than 200,000 vehicles and surpassed $1 billion in net income for the first time in its second quarter, which ended June 30. The company also told investors it is on track to build its first Model Y vehicles at new factories in Berlin and Austin, Texas, by the end of this year. Investors are also anticipating strong numbers out of Tesla’s Shanghai factory after July delivery data was released by several Chinese electric vehicle makers today.

Now what

Following the strong quarterly performance, Mizuho Securities analyst Vijay Rakesh has increased the firm’s price target to $825, representing more than 20% upside from Friday’s closing price. The analyst believes cost efficiencies across production facilities will continue to help improve gross margins. Also Monday, Goldman Sachs Group Inc (NYSE:GS) included Tesla in a group of companies it recommends, CNBC reports.

Tesla also pointed to strong performance at its Shanghai plant as contributing to the company’s success. In the earnings release, Tesla stated: “Due to strong U.S. demand and global average cost optimisation, we have completed the transition of Gigafactory Shanghai as the primary vehicle export hub.”

Today, Chinese competitors Nio Inc (NYSE:NIO), XPeng Inc (NYSE:XPEV), and Li Auto Inc (NASDAQ:LI) all reported strong July vehicle delivery numbers, with year-over-year results jumping 125%, 228%, and 251%, respectively. Tesla investors today are anticipating that strength will flow into the company’s China sales as well.

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

The post Why Tesla stock popped Monday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesla wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging

Why the Tesla share price jumped 5% on Thursday

Here are the US shares ASX investors were buying last week

Why Tesla stock fell on Tuesday

Tesla (NASDAQ:TSLA) share price climbs on record revenue and profits

Howard Smith owns shares in Nio. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended NIO Inc. and Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!