Tesla has been on an absolute tear the last three months, doubling in value to become the third most valuable automaker in the entire world behind Volkswagen and Toyota, and also becoming the most valuable American automaker in history.

So what the heck has been going on?

Well, my name is Rob Mallour and today we're looking at the 10 reasons Tesla is hitting

new all-time highs, as well as at the end a couple of bonus reasons that should be driving Tesla, but aren't

quite yet in my opinion.

So stick around. Number one improving fundamentals.

Improving fundamentals.

Now these aren't all necessarily going to be in order, but improving fundamentals absolutely comes first.

The two most important factors for Wall Street when it comes to Tesla are demand and profitability.

Demand is first because as long as Tesla has demand, they have a runway.

High demand means more potential for growth, and more potential for growth means more potential for economies of scale.

Economies of scale drive costs down, and that improves profitability.

So even with a short-term period lacking profitability, as long as demand is intact there is an

investable thesis for Tesla. That is number one. This is a major reason that

Tesla struggled in the first half of 2019. They came off of really strong

quarters at the end of 2018, but then as the federal tax credit in the US

expired, deliveries fell, especially in Q1 and especially so on Model S and Model X, sales went from about

27,000 units in Q4 to just over 12,000 units in Q1.

And they didn't make up for that in model 3, which also fell from 63,000 in Q4 to just over 50,000 in

Q1.

This is about the time that people started to get really nervous about the sustainability of demand for Tesla.

That's where the thought starts to creep in of, okay, maybe Tesla just fulfilled this huge backlog that they had for model three over years and years of

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