Why Tesla stock jumped on Wednesday

One analyst thinks the company's first-quarter deliveries will be higher than analysts' average forecast.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of electric-car maker and green-energy specialist Tesla Inc (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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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