Shares of Tesla jumped as high as 5% in trading Tuesday, even though it was General Motors that made headlines for delivering its first three Chevrolet Bolt electric cars to Tesla’s backyard.
Tesla’s stock reached as high as $201.28 in trading, likely due to a combination of factors, Benjamin Kallo, an analyst covering Tesla over at Robert W. Baird told Fortune in an email.
Some investors likely felt more bullish about the stock after the Information reported that Google, one of Tesla’s main competitors, had “scaled back” its self-driving car efforts. But Google had simply decided to not manufacture its own self-driving cars. Alphabet, Google’s parent company, is still planning on sharing its self-driving technology with other automakers.
The stock has also been oversold in the past 12 months, with the stock shedding 9% in that time period, leading investors to hop on board, said Kallo, who has a “Buy” rating on the stock. After all, oil prices have rebounded since OPEC reported big output cuts in November.
Additionally, reports of CEO Elon Musk meeting with Donald Trump during a tech industry summit on Wednesday may have also given the stock a helping hand, Kallo said. One StockTwit user speculated that a meeting with Trump will result in president-elect tweeting that “Tesla is the future”—resulting in stock moves akin to those in Boeing and Lockheed Martin’s stock after the president elect tweeted about both.
$TSLA Early rumors from the tech meeting? Trump will tweet Tesla is the future after meeting Musk.
— Suresh Venkateswaran (@NewbieInvester) Dec. 13 at 10:17 AM
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Shares of General Motors are up 0.35% in trading Tuesday.
