Why Tesla Is Up Over 8%

Shares of Tesla TSLA are shooting up over eight percent after Elon Musk announced the company would be opening its patents to the public.

According to the Financial Times, sources at Tesla, BMW and Nissan NSANY said the three companies are in talks to work together on charging networks. The three companies, who control the electric vehicle market, supposedly want to build a global charging station.

The idea that Tesla may be working with BMW and Nissan, shortly after the patent announcement, has many investors speculating that a series of deals are on the way for the automaker. This speculation is likely responsible for the bulk of the move.

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Other likely catalysts aiding to the boost in share price are short covering and renewed retail investor interest.

With shares over $224, Tesla has recovered more than half of the selloff from $265 to $177. Technically, it is likely that the stock will float around the 50 percent level ($221), however if the momentum continues upward, it is hard to tell when appreciation could stop.

Shares of Tesla were last trading at $224.80, up 8.95 percent on the day.