It looks like 3D Systems (NYSE:DDD) is ready for bigger and better things. A little bit of industry sleuthing — and an interesting connection to electric vehicle leader Tesla (NASDAQ:TSLA) — have DDD stock climbing higher Thursday. This comes after shares closed out Wednesday up by almost 20%.
So what exactly happened? And what do investors need to know about DDD stock here?
Well, it all started with a job posting. Investors caught wind of the fact that Tesla is hiring for a new additive manufacturing technician. Hint: Many in the know understand that additive manufacturing is just a fancy way of saying 3D printing. But Tesla made it even more obvious. The job posting — which went up in late August — says the company is looking for an individual to support its “rapidly growing” additive manufacturing operation.
Investors also would likely appreciate knowing the job posting is for Gigafactory in Nevada.
Now this is where the sleuthing starts. Many industry enthusiasts know that Tesla has relied on 3D printing before for its prototypes, but not necessarily manufacturing. Digging deeper, this has led many to believe Tesla will soon look to acquire more printers. Turns out, 3D Systems has some of those! Wall Street started sending 3D Systems stock higher yesterday because the company is one of the leading suppliers of 3D printers and other solutions.
Also helping support this theory is that SpaceX, the sister of Tesla, has a much more robust reliance on 3D printing technology.
DDD Stock Pops on Tesla Connection
Simply put, any moves by Tesla into the world of 3D printing could be a big deal for 3D Systems and its peers. We have seen the electric car giant make waves in the mining and solar worlds. Could DDD stock get a much more sustained lift soon? Investors are also bidding up rivals ExOne (NASDAQ:XONE) and Stratasys (NASDAQ:SSYS) on the same hopes.
But investors need to know the full story with 3D printing. It could very well be an innovation that is about to transform manufacturing as we know it, and not just for Tesla.
Amid the novel coronavirus pandemic, all sorts of companies turned to 3D printing. One report said these printers were on the “front lines” — ramping up production of protective equipment like face masks and shields. Many healthcare workers said this was critical at a time when the traditional equipment supply chain was broken.
Essentially, keep DDD stock on your radar. A rise of innovation in all aspects of manufacturing, as well as U.S.-China trade risks, gives 3D systems quite a bit of potential.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article
Sarah Smith is a Web Content Producer for InvestorPlace.com.