Tesla stock is gaining ground ahead of its Model Y unveiling

Rich Pedroncelli / Associated Press

Tesla CEO Elon Musk

• Telsa shares were up more than 2% on Wednesday and Thursday as the electric-car maker gets set to unveil its Model Y on Thursday evening.
• The sport-utility-vehicle crossover, which consumers prefer over sedans, is expected to drive significant sales.
• Watch Tesla trade live.

Tesla shares were up 1% Thursday as investors anticipated the rollout of the Model Y, a sports-utility-vehicle crossover which will share 75% of its parts with the Model 3.The unveiling event is set for 8 p.m. PT at the electric-car maker's design center in Hawthorne, California. It will be live streamed on Tesla's website.

"We believe rolling out the red carpet for the next generation EV SUV cross over model could be a potential game changer for Musk & Co. when this product goes into full production in 2020," wrote Wedbush analyst Dan Ives. Ives maintained his "outperform" rating and $390 price target, a 33% rise from current trading.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

While some analysts fear cannibalization of Model 3 demand, Ives, a noted Tesla bull, believes the Model 3 will remain central to Tesla's growth plans with the Model Y delivering complimentary demand.

"Over the next three years we believe Model Y units could approach 15%-20% of overall units with Model 3 continuing to be the hearts and lungs of the Tesla growth story over the coming years globally,"continued Ives.

Tesla stock has been on a wild ride in 2019, reaching a high of more than $350 a share after CEO Elon Musk said he expected the company to be profitable "for all quarters going forward." Shares fell 17% just one week later to $287 on the back of significant demand concerns.

Telsa recently announced a restructuring to reduce costs ahead of the rollout of its $35,000 Model 3, including the closure of all retail stores and the shift of all sales to online orders. The restructuring was partially reversed two weeks later as Tesla announced that many retail stores would remain open.

Tesla also continues to face turbulence related to CEO Elon Musk's 2018 settlement with the SEC. Musk recently filed a brief defending his actions after the SEC accused the CEO of violating the settlement.

Tesla stock was down 13% this year.

Business Insider

Get the latest Tesla stock price here.