Here’s why Tesla stock price gained 28% in 24 hours

Shares of Tesla (NASDAQ:TSLA) have surged 13% today after Credit Suisse upgraded its stock from “underperform” (sell) to “neutral” (hold), an important signal for those looking to invest in shares. With today’s gains in the early New York trading session, shares of the electric car maker have gained around 28% in the past 24 hours.

Fundamental analysis: Credit Suisse upgrades the stock

Credit Suisse analyst Dan Levy upgraded the Tesla stock to “neutral” from “underperform” as he believes that the car maker is competitively better positioned than its main rivals to survive the ongoing crisis triggered by the coronavirus outbreak. 

He also increased the target price to $580 from $415, way above Tesla’s current market price of $733.90. Still, things aren’t so rosy for Tesla, as Levy said that Musk’s company may be eating through $300 million a week in cash.

Tesla previously said it will aim to deliver 550,000 vehicles this year, however, Levy believes that the coronavirus-related disruptions in the first half of the year will force Tesla to deliver around 400,000 units this year. 

Technical analysis: Stock price keeps pressing higher

Shares of Tesla are trading 13% higher today in New York after surging higher in the premarket session on Levy’s stock upgrade. In addition to 13.6% gained yesterday, Tesla stock price has now gained around 28% in the last 24 hours, hitting the 5-week high of $741.88.

The bulls are now likely to press forward targeting a band of resistance between $780 and $820 as the shares of the electric car maker continue to outperform the broader market. Tesla stock price has gained 110% since it printed the 2020 low of $350.51 on March 18.

Summary

Shares of Tesla have added 13% today, in addition to gains to 13.6% yesterday, after Credit Suisse analyst Dan Levy upgraded the stock due to the company's competitive advantages over its rivals. As a result, Tesla stock price trades at a 5-week high above the $740 mark.