What happened
Shares of electric-car maker and green-energy specialist Tesla (NASDAQ:TSLA) soared on Wednesday, jumping about 4.7% by 1:30 p.m. EDT.
The stock’s gain is likely fueled by both an optimistic day in the overall market and an analyst note expressing a bullish view for the auto company’s first-quarter deliveries.
So what
In an upbeat day on Wall Street, the S&P 500 was up about 0.8% as of this writing on Wednesday. The tech-heavy Nasdaq Composite had gained more than 1.8%. Many growth stocks like Tesla were up even more.
For two trading days in a row, growth stocks generally seem to be rebounding from a brutal sell-off that occurred between mid-February and late March.
Relating to Tesla specifically, Wedbush analyst Daniel Ives said on Wednesday that he believes Tesla’s first-quarter deliveries will exceed analyst expectations for the period.
Now what
There’s a lot of uncertainty around Tesla’s first-quarter deliveries due to semiconductor supply shortages that have weighed on broader auto production. But Ives thinks that strong deliveries in the U.S. and China will help the company report better-than-expected deliveries.
Though Tesla’s quarterly deliveries are expected to be lower sequentially, analysts are generally modeling for extremely strong year-over-year growth of around 80% to 90%.
Tesla will likely report its first-quarter vehicle deliveries on Friday or Saturday.