Markets

Why Tesla Stock Jumped on Monday

What happened

Shares of Tesla (NASDAQ: TSLA) jumped on Monday, rising as much as 5.5%. As of 1:23 p.m. EDT, the stock was up about 5%.

The stock's gains came as the overall stock market was trending higher on the day.

A chart showing a stock price rising

Image source: Getty Images.

So what

Better-than-expected quarterly results from tech stocks Apple, Facebook, and Amazon last week sent their shares sharply higher and drove optimism in the overall market, and that broad momentum seems to be persisting. As of this writing, the S&P 500 is up 0.8% Monday, and many growth stocks are up by several percentage points or more.

This behavior isn't abnormal for Tesla stock based on its patterns in recent months. Shares of the electric car maker have been exceptionally volatile this year as traders have piled into the stock, betting it will continue to grow rapidly and solidify its leadership within its nascent market.

Now what

In the second half of 2020, investors will be watching to see whether Tesla can continue impressing investors. The automaker is expanding rapidly, building a factory near Berlin, Germany, and recently announcing plans for another factory in Austin, Texas. In addition, Tesla began deliveries of its newest vehicle in March -- the Model Y SUV.

Find out why Tesla is one of the 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

Tom and David just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

 

*Stock Advisor returns as of June 2, 2020

 

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TSLA

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More