Why Tesla Stock Jumped Thursday

What happened

Shares of Tesla (NASDAQ: TSLA) jumped on Thursday. The stock finished the trading day up more than 6%.

The stock's gain follows a string of updates on the company, including the release of a new version of Tesla software, a Chinese news website's report that Tesla has completed its first body-in-white Model 3 at its new factory in China, and a leaked email from CEO Elon Musk to employees stating that the company was close to delivering 100,000 vehicles in its third quarter.

An interior view of the Model 3, centered on its 15-inch touch display

The Model 3. Image source: Tesla.

So what

Tesla started rolling out version 10 of its Tesla vehicle software on Thursday. New features include an application called Tesla Theater, where owners can get access to Tesla tutorials and popular streaming services while their vehicles are in park; the ability for owners to "summon" their vehicles while in a parking lot; and more.

Meanwhile, the company's alleged completion of a body-in-white Model 3 unit in China suggests Tesla is making progress building production capacity at the new factory. "Body in white" refers to the part of the vehicle production process when a vehicle's parts have been put together but before its motors, axles, and other internal parts have been secured inside, or the body is painted.

Finally, news that Tesla is close to 100,000 vehicle deliveries in Q3 implies that the company is on pace for another record quarter.

Now what

2019 is a pivotal year for Tesla. The company's losses have been narrowing, and management is guiding for profitability in the second half of the year. But Tesla will need to execute on its aggressive global expansion of the Model 3, and address delivery logistics challenges as its sales climb.

For the full year, Tesla is aiming for vehicle deliveries to increase 45% to 65% compared to 2018.

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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.

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