Tesla stock rose more than $ 23, or 6.5%, on Monday. This is a new 52-week high for the pioneer of electric vehicles. The problem is that no one on Wall Street knows exactly why stocks are rising.
An automotive analyst told Barron that the Tesla change (ticker: TSLA) was “surprising” and found that U.S. tax credits for electric vehicles will decrease in 2020. A Wall Street dealer had no additional insights when asked about the change on Monday.
Deutsche Bank analyst Emmanuel Rosner noted in a research report released Monday that a German Tesla agency has approved a new Tesla facility in that country. Good news, but it’s not a stock moving event. Nobody expected Tesla to have problems building capacity in Germany. The company extends its manufacturing base beyond its roots in Fremont, California to Shanghai and Europe.
Of course, Tesla is a short-selling stock. Bearish investor borrows and sells stocks, betting on falling prices. Relatively high short sales can lead to higher volatility of the shares. There is always the potential for a short squeeze, even if investors hurry to cover short positions at once, leading to a temporary flood of buy orders.
Even if investors cannot agree on why, they can agree on the impact. The rally in the Tesla share was breathtaking. According to Dow Jones Market Data, the closing price on Monday would be the highest since August 7, 2018, when the stock closed at $ 379.57. In addition, the stock rose more than 110% from the 52 week closing price of $ 178.97 on June 3, 2019. It was a remarkable run.
The Tesla share has risen by around 14% since the beginning of the year and is therefore slightly worse than the comparable profits of the S&P 500 and the Dow Jones Industrial Average. But Tesla stock has risen almost 57% in the past three months.