Tesla is surging

On Tuesday, Tesla missed its guidance for 2016 vehicle deliveries. On Wednesday, it started producing batteries at its massive factory in Nevada.

Some bad news, some good news, and the markets decided it was all worth sending Tesla stock to a three-month high.

Shares crested to $227 on Wednesday and were up 4% in afternoon trading.

The deliveries miss was considerable - although unworthy of fixating on - and by rights it should have given anyone who wanted out of Tesla an excuse.

That hasn't happened, and one might conclude that the deliveries miss was more or less priced in last year, and that now Tesla investors can charge toward the next round of news events around the company.

Tesla shares have established a pattern of sliding at the end of a year and into the first quarter before recovering. That could still happen this year. But it's not easy to see a looming business event that would drive Tesla's value down.

So for now, Tesla bulls can enjoy watching the company's stock brush off some negative news.