Why Tesla Is Ending the Week on a High Note

What happened

Tesla (TSLA) shares are moving higher to end the week, hitting their highest level in a month. The stock was back over the $200 per share level after having jumped by 6.1% Friday as of 2:35 p.m. ET. The move comes with news of potential plans for a new battery factory, and as investors look forward to the electric vehicle (EV) leader's first-quarter delivery report. 

So what

Tesla typically reports quarterly production and delivery data on the second day of a new quarter. So investors are positioning themselves to see those numbers Sunday ahead of next week's trading.

The company delivered 405,278 vehicles from production of nearly 440,000 EVs in the fourth quarter. But analysts on Wall Street believe headwinds from a slowdown in China's economy, and supply chain issues, may be in the rearview mirror. They expect first-quarter deliveries to reach a record of 430,000, according to FactSet Research

Now what

There are signs that back up those optimistic projections. Registrations in China for Tesla vehicles increased for four straight weeks prior to a drop last week. That data shared by Investors Business Daily indicates China deliveries could also hit a new record. 

Investors are also rallying around the stock on news that Tesla may be looking to build yet another battery cell factory in the U.S. in cooperation with its Chinese supplier, Contemporary Amperex Technology Co. Limited — better known as CATL. That report by industry follower Electrek noted a previous report that Tesla has discussed these plans with White House officials in recent days. That would likely be for clarification regarding the China-based company, as well as details on how that business venture would be viewed for incentive requirements under the Inflation Reduction Act. 

With delivery news likely due Sunday, and the potential for a major new investment in batteries on the horizon, investors are pushing Tesla back to a level the stock has only hit once since last November. 

Originally published on Fool.com