What happened
Shares of Tesla (NASDAQ: TSLA) jumped higher on Thursday. The stock rose as much as 4.6% but is up 3.8% as of 12:55 p.m. ET.
The electric car maker's stock is likely up due to a combination of an upbeat day in the market and an analyst's move to reiterate a buy rating on shares.
Tesla factory. Image source: The Motley Fool.
So what
Highlighting bullishness in the overall market on Thursday, the S&P 500 is up 1.1% as of this writing. But many tech stocks and growth stocks (like Tesla) are up even more. This is partly evidenced by the tech-heavy Nasdaq Composite's relative outperformance today. As of this writing, the Nasdaq is up about 1.5%.
But Tesla stock may also be getting a lift from an analyst note from Jefferies. Philippe Houchois said that he's now more optimistic on the company's fourth-quarter financial performance. Further, the analyst said that Tesla's expected update on its product roadmap (alongside its fourth-quarter report) should provide some clarity on management's plans for important upcoming products like Tesla's Cybertruck and a more affordable, smaller Tesla.
The analyst's 12-month price target of $1,400 translates to more than 35% upside from where shares are trading now.
Now what
Investors will get more information on Tesla's recent progress and management's outlook when the company reports its fourth-quarter results next week. The automaker has its fourth-quarter earnings report scheduled for Wednesday, Jan. 26, after market close.
In the report, investors will get to see the company's financial performance for Q4, management's guidance for vehicle deliveries in 2022, and likely some insight into Tesla's expected timeline for future product launches.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Jefferies Financial Group Inc. and 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.
