The Tesla stock price is up another 1.1% in the last five trading sessions and has now climbed 28.2% in the last three months.
At Monday's high of $285.30, the Tesla Motors Inc. (Nasdaq: TSLA) stock price is very close to the all-time high of $291.42 it set in September 2014.
On Friday, CEO Elon Musk unveiled new upgrades to the Model S sedan. They included larger car batteries and new price points. The company also announced the new "Ludicrous Mode" available on some new vehicles, which lets the car go from 0 to 60 mph in 2.8 seconds.
It was the latest announcement in a string of good news that has sent the Tesla stock price soaring since April. Here are three other reasons behind TSLA stock's run...
Three Catalysts Are Driving the Tesla Stock Price Higher
In 2015, many Wall Street analysts have raised their targets on the Tesla stock price or reiterated their bullish projections.
In June, analysts at Jefferies raised their price target to $360 and reiterated a "Buy" rating. Credit Suisse set a target of $325 in February. Baird analysts raised their price target from $275 to $335 in early June as well. Stifel has an even higher target of $400.
Even at this week's high of $285, all of those targets project strong gains.
Another reason for TSLA stock's run is the progress on the Tesla Gigafactory.
Musk first announced the Gigafactory would be built in Nevada in September 2014. In May, Bloomberg released video captured by a drone which showed the construction progress. The video showed that the frame had been completed for roughly one-fourth of the 10 million square foot building.
The implications of the Gigafactory are enormous. It's expected to produce more than 500,000 vehicles annually by 2020. That's more annual production than was produced globally in 2013.
"The Gigafactory is expected to have a dramatic effect on the energy storage market, helping to bring battery costs down by as much as half by 2020," Money Morning Global Energy Strategist Dr. Kent Moors said.
But the biggest catalyst this year has been the Tesla home battery, which was unveiled on April 30.
At a special event, the company announced both the new "Tesla Energy" division and the home batteries called "Powerwalls."
The units are built using the same lithium-ion batteries used in Tesla cars. Different models can store either 7 kWh or 10 kWh of solar power. It's a major shift for Tesla, making it more than just a car company.
"Tesla is not just an automotive company, it's an energy innovation company," the company said in a statement at the time. "Tesla Energy is a critical step in this mission to enable zero emission power generation."
In the month following the battery announcement, the Tesla stock price climbed 7.9%.
While we're bullish on the Tesla stock price, TSLA is not the right investment for everyone. Here's how we recommend playing the stock now...
Should I Invest in Tesla Stock Now?
Tesla stock is not for conservative investors. It is extremely volatile and reacts to the news much more than most stocks. It doesn't fit in every portfolio.
But if you're willing to accept long-term risk, Tesla is an excellent choice.
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"I believe Tesla is one of the best long-term investments an investor can make at the moment," Money Morning Chief Investment Strategist Keith Fitz-Gerald said. "If there is ever a case to buy a few shares and tuck them away, this is it."
Tesla's push into the home battery market and Musk's vision for the future of the energy industry are major reasons why.
"I think Musk is the most innovative CEO on the planet and that he sees value others don't yet recognize," Fitz-Gerald said. "Cars, batteries, innovative business models - nobody knows where it will go but ultimately if you're along for the ride, I think it'd be very hard to go wrong over time."
Moors has also been touting the potential of Tesla's home batteries for months.
"In everyday use, the unit is expected to allow homeowners to store solar-generated power for use during high-cost periods, giving them the flexibility to use the conventional grid for cheaper, off-peak electricity," Moors said in February.
The Tesla Gigafactory and the Tesla home battery prove that the company is much more than just a vehicle maker. Tesla is one of the most innovative companies in the world and is a long-term buy for aggressive investors.
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