“We believe a large evolving green tide will propel Tesla shares higher despite short-term chip shortages and that third-quarter results to be released this week are another positive catalyst,” the analyst at Wedbush Daniel Ives on a note.
Tesla shares have risen steadily in recent months, thanks to strong quarterly results that showed the company fared much better than traditional automakers in handling semiconductor shortages. Third-quarter deliveries beat all estimates.
Tesla will report its third quarter results on October 20. It is one of the few global auto stocks to enjoy upward revisions to analyst earnings estimates in the past month, while most other automakers faced cuts due to chip shortages.
Monday’s rise also helped Tesla catch up with the S&P 500 index’s gains this year. As of 11:15 a.m., Tesla shares were up 22% year-to-date, slightly ahead of the 19% advance of the broader index. This had last happened in late February.