Why Tesla stock broke above $ 2,000 on Thursday

What happened

Actions of You’re here (NASDAQ: TSLA) soared on Thursday, rising more than 7% at 3:00 p.m. EDT.

The stock’s gain builds on recent momentum since the announcement of an upcoming five-for-one stock split. This momentum and an overall bullish day for growth stocks (like Tesla) are likely to be behind the stock’s rise on Thursday.

Image source: The Motley Fool.

So what

Tesla’s shares were ripped apart recently. The stock is now up almost 800% in the last 12 months and 24% in the last five trading days alone. Investors – and even some analysts – have applauded the company’s upcoming stock split, betting that it will solicit more demand for the stock at a time when many retail investors are turning to individual stocks. This pre-fractionation dynamic seems to continue today.

Although the impending split is probably do not one of the main reasons Tesla’s stock was trading higher on Thursday, a stock that could have a slightly positive impact on price action today comes from Asian news website Nikkei. The news website reports that Panasonic plans to invest more than $ 100 million next year in battery production capacity at the Tesla plant in Nevada. In addition to increasing the plant’s production capacity, the company is increasing the storage capacity of the batteries it manufactures by 5% in September, according to Nikkei.

Now what

Tesla’s business quickly recovered from plant closures earlier this year. The company recently relaunched its pre-COVID forecast for 500,000 vehicle deliveries this year, up from around 368,000 deliveries in 2019.

Tesla shares will begin trading on a five-to-one split-adjusted basis on August 31.