The Tesla Inc (NASDAQ: TSLA) share price was on fire on Monday night. Here’s why the electric vehicles company’s shares stormed higher…
The post Why the Tesla (NASDAQ:TSLA) share price zoomed 12.5% higher appeared first on Motley Fool Australia. –
The Tesla Inc (NASDAQ: TSLA) share price was an exceptionally strong performer on Wall Street on Monday night.
The electric vehicles company’s shares snapped their losing streak and zoomed a sizeable 12.5% higher to US$419.62.
Why did the Tesla share price storm higher?
There were a couple of catalysts for Tesla’s strong share price gain on Monday night.
The first was a solid recovery in the Nasdaq index. After a couple of weeks of declines driven by profit taking, the tech-heavy index rebounded with an impressive 1.9% gain overnight.
And although Tesla isn’t a technology share in the same vein as Amazon or Apple, many investors class it as one. As a result, it has a tendency to move with the Nasdaq index.
Strong demand in China.
The second catalyst for yesterday’s strong gain appears to have been comments out of Goldman Sachs.
According to CNBC, the broker’s research indicates that downloads of its app have been increasing at a solid rate. It feels this is thanks largely to the China market.
Goldman said: “Tesla global weekly app downloads have recently been tracking up on a year-over-year basis, with the most recent full week of global data up about 20% yoy.”
Though, the broker does note that Tesla traditionally performs strongest in the final month of the quarter.
It explained: “Tesla’s deliveries tend to be back-end weighted in part because in a given quarter the company typically starts building cars that have to be delivered the farthest away first, and this results in a lot of deliveries occurring in the final month of a quarter.”
Nevertheless, the trends are positive for Tesla app downloads, which appears to be an indication that its car sales and deliveries have been strong.
Following this gain, the Tesla share price is now up 388% since the start of the year.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.