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What happened
Electric car company shares You're here (NASDAQ: TSLA) rose Tuesday, gaining 7%. As of 1:00 pm EDT, the stock was up 6%.
The rise in equities is likely driven by a number of factors, including analysts' comments, gains on Tuesday's growth stocks, and so on.
Source of the image: Tesla.
So what
Morgan Stanley analyst Adam Jonas reiterated Tuesday an equivalent weighting and a target of $ 230. The 12-month price target is notably more than 20% above the current market, indicating a significant upside potential for the stock.
Tuesday's Tesla gain also follows a sharp decline in the stock since the beginning of the year. Shares are down 43% so far even after today 's gain. As a result, some investors may believe that the shares have been oversold.
Finally, it is a globally positive day for growth stocks, as many of them recovered by a few percentage points on Tuesday after being beaten against the concerns of the trade war. The current increase in Tesla may be partly due to this uptrend in the market.
Now what
The short-term concern of Tesla investors to watch will be the demand for the company's vehicles. The electric car maker predicted that vehicle sales would increase by 45% to 65% from 2019. Although the growing production of Model 3 suggests that the supply will be enough for Tesla to achieve this goal, it is not the only way in is not clear if the demand will be robust enough.
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