Tesla surges -- but it's hard to figure out why

Markets Insider
  • Tesla shares gained about 6% on Monday.
  • The gains came despite a lack of any real news.

Tesla shares spiked late Monday, surging more than 6% to more than $US336 at the closing bell.

It was unclear why the stock was trading higher. Shares had been relatively flat since the beginning of the year, but had slid on news last week of weak Model 3 deliveries in 2017.

The Model 3 is Tesla’s mass-market vehicle. The company had earlier said it would be producing 5,000 per week by December 2017, but for the entire fourth quarter, it sold on 1,550.

Absent market-moving news, major tweets from CEO Elon Musk, or a research note from an analyst who covers the stock, the best explanation for the move could be that the poor Model 3 numbers have now been digested and investors have switched to considering Tesla record deliveries total for 2017: more than 100,000 vehicles.

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