Shares of Tesla (NASDAQ:TSLA) had roared ahead by 3.3% at 10:30 a.m. EDT on Tuesday, and there might be three reasons this is happening.
Let’s address the first two reasons: On Friday, before the holiday weekend, ARK Invest founder Cathie Wood reportedly told investors that because Tesla’s share of the electric car market “has actually gone up fairly dramatically around the world,” she now believes that the stock could be worth $3,000 a share by 2025 instead of the $755 or so that it costs today.
Then, CEO Elon Musk apparently told his employees in an email that he agrees with Wood and that the company could be selling between 5 million and 10 million vehicles a year by 2025 if Tesla “execute[s] really well.”
Diligent Tesla-watcher Electrek was the news outlet that got hold of Musk’s email to his employees, and reported the CEO’s comments. And this brings us to the third reason Tesla stock could be going up today.
This morning, Electrek reported that a new version of Tesla’s Full Self-Driving (FSD) autonomous car software, version FSD Beta 9, is “being passed around” among participants in Tesla’s early access program.
That doesn’t mean that the new version is ready for deployment, or even that it will be released by the end of September, as Musk has promised. But it does mean that Tesla is getting the software ready for release, and that some folks at least are already able to use it.
Combined with the optimistic sales projections, that seems to be enough to get Tesla investors excited today.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.