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Tesla’s Stock Zooms To Two-Year High On China Factory Optimism

Tesla Inc. shares rallied more than 6% on Monday, ending only a few dollars short of their September 2017 best-ever finish.

The stock closed at $381.50 and was the best performer Monday on the Nasdaq 100, and also among the top 10 most active.

Monday’s gains, Tesla’s largest one-day percentage increase since late October, put the stock at a 15% advance for the year, about half the gains of the S&P 500 index but an impressive finish after a losing first half of the year.

Tesla hit a record closing high of $385 on Sept. 18, 2017.

Analysts at Oppenheimer on Monday highlighted photos of Tesla vehicles produced in the under-construction China factory and said that “expectations for a relatively smooth ramp” for the Shanghai facility are increasing.

Tesla has learned “important lessons” from the production ramps for its Model S, Model X and Model 3 and “is implementing best practices in the new factory,” the analysts said in a note.

In the near-term “it appears [Tesla] is tracking toward being able to achieve its target for delivering 360k vehicles” for the year, they said. “We note that [Tesla’s] deliveries are highly concentrated toward the end of the quarter and execution over the next two weeks will be critical for 4Q19 results.”

Tesla is expected to report fourth-quarter deliveries in early January and fourth-quarter results likely in February.

The company surprised markets in October when it reported a surprise GAAP and adjusted profit for the third quarter, kicking off the late-year gains for the shares, which include a 31% advance for October.

Tesla is fresh from showing off its “Cybertruck,” and Chief Executive Elon Musk has said the pickup truck already has received about 250,000 preorders, which each including a $100 refundable deposit.