Why Tesla shares surged this week

The electric-car maker’s stock has seen double-digit gains this week.

| More on:
Blue Model Y Tesla vehicle

Image source: Tesla

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

What happened

Shares of Tesla (NASDAQ: TSLA) have surged this week, rising more than 10% as of this writing. At one point during the week, the electric-car maker's shares were up a total of 11.9%.

The stock's sharp move higher has been fueled by a combination of factors, including volatile Bitcoin trading, news that the automaker may open its charging network to other automakers next year, and an upbeat week for growth stocks like Tesla.

So what

The latest news that may have benefited Tesla stock came on Thursday morning when electric-car news website Electrek reported that Tesla is in talks with Norwegian officials to open up its Supercharger network to other automakers in the country. This follows a rumor last week that Tesla was considering opening up its fast-charging network in Germany. Not only could sharing its extensive charging network create a new revenue stream for Tesla but it could also draw more attention to electric cars overall, speeding up their adoption from consumers.

A rebound in Bitcoin after a sharp sell-off on Tuesday may have also played a role in Tesla stock's rise this week -- particularly on Wednesday. The automaker has purchased $1.5 billion worth of the cryptocurrency and it plans to hold its stake for the long haul. This stake in Bitcoin sometimes causes some volatility in the price of Tesla stock when Bitcoin trades sharply higher or lower.

Finally, many growth stocks rose several percentage points or more as Wall Street starts to warm up to these companies' shares after many of them were sold off sharply earlier this year. This market trend is likely helping Tesla stock.

Now what

In the meantime, Tesla is wrapping up its second quarter. Investors are likely hoping Tesla can deliver more vehicles than ever before in Q2 as the company strives to hit its guidance to grow total 2021 deliveries more than 50% year over year.

Investors should get an update on the period at some point during the second half of July, when Tesla usually reports its second-quarter results.

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

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

More on International Stock News