Here's Why Tesla (TSLA) Stock Is Gaining Today

Shares of Tesla TSLA gained more than 3% in early morning trading hours on Tuesday. The move comes as the electric carmaker celebrates its Model X being awarded the highest-ever SUV safety rating by the National Highway Traffic Safety Administration.

Indeed, the NHTSA confirmed today that the Model X successfully earned a 5-star rating in every category and sub-category tested for.

"That means that in the event of a serious crash, Model X occupants have an overall 93% probability of walking away without a serious injury – a testament to our commitment to building the safest cars on today's roads," Tesla said in a blog post.

Interestingly enough, out of all the vehicles tested by the NHTSA, only the Tesla Model S ranks better than the Model X in terms of injury probability to passengers. Today's news once again confirms to investors that Tesla is committed to providing a high-quality product to the world.

TSLA is likely also moving higher thanks to short covering. On Friday, as the technology sector was getting slammed, Tesla slumped after notable short-selling research firm Hedgeye called the stock its "best short idea" (also read: Shorts Attack NVDA, TSLA and RLGT).

Hedgeye is known for making snap calls and cashing in on the ensuing slumps, and that seems to be exactly what happened on Friday. Sellers were out in full force, but the drop eventually found a bottom. Now, on the back of more good news about the company, shorts might be feeling the pressure to cover.

Of course, we do have to mention that Tesla currently sports a Zacks Rank #4 (Sell). This ranking is a result of the company's disappointing results in the prior quarter, which caused analysts to reduce their estimates. Remember, the Zacks Rank is heavily influenced by these estimate revisions, so it was this activity that caused the stock's rank to take a hit.

And while a Zacks Rank #4 (Sell) is normally not a good indicator, investors should know by now that Tesla plays by its own rules. Despite a fundamental picture that would make traditional investors squirm, the stock has continued to climb higher—to the tune of nearly 70% this year—and it's showing no signs of stopping.

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