- Tesla (TSLA) stock closes up over 3% on Friday as equities rally.
- Tesla set up continues to be bullish in the short term.
- China deliveries increase sharply versus a month ago.
UPDATE: TSLA stock has traded up 1.7% in the first hour of Monday's session, about 50 basis points ahead of the Nasdaq Composite. The market overall appears rather upbeat. All three major indices are green. The Nasdaq, known for having more high-growth tickers, is slightly ahead of the S&P 500 and about 30 basis points ahead of the Dow index. This would seem to show that risk is back in play to start the week. TSLA shares are exchanging hands just below $305. TSLA appears to be popular with the retail crowd and has started the week as a top ticker on the WallStreetBets Reddit community. 37,420 call contracts expiring on September 16 for the $305 strike price traded so far on the day. The last price was $6, up 32% from Friday.
Tesla (TSLA) stock closed up 3.6% on Friday as the equity market continued its path to recovery. Monday may see a quieter session ahead of Tuesday's blockbuster CPI report, which should set the tone for perhaps the next month in equity markets. Oil prices are falling, bond yields are stabilizing, and the VIX is steady – all of which seem to indicate that we could be in for an extended rally into the Q3 earnings season in October. Bitcoin has already moved higher as it powerfully retook the $20,000 level last week and has added another few percentage points over the weekend. All of this should see risk assets and especially high beta ones like Tesla move up over the next few weeks. Hence, this is why I have closed my short positions in Apple (AAPL) and Tesla.
Tesla (TSLA) stock news
The news flow last week was positive overall for Tesla. China deliveries tripled in August versus July to 76,965 cars versus 28,217 in July. Tesla increased production at its Giga factory in Shanghai, and this comes despite more lockdown and heatwave restrictions that took place during August in China. A strong statement of intent from the EV leader. Data from China showed car sales were up over 30% for August 2022 versus August 2021 but fell versus July. This was mentioned due to lockdowns and interruptions due to heatwave restrictions.
But overall it appears for now car sales and EV sales remain strong in China. EV sales are up over 100% from a year ago in China and up 12% versus a month ago. Having seen the Shanghai plant ramp up production, Tesla has reportedly now focused on Giga Nevada to ramp up production to the next level. Tesla has appointed a new Head of Operations who will report directly to Elon Musk.
CNBC reports that during an internal meeting that the new boss for Nevada and Freemont California said that August was a record for the Freemont factory. He also mentioned new milestones for the Gigafactory in Berlin. All of which sounds notably bullish.
Tesla (TSLA) stock forecast
Things are starting to look interesting here. A double bottom has been put in at $266, and now TSLA has retaken its 50 and 200-day moving averages. Next up is the powerful double top at $314. A break there should get the move going and draw in momentum players, many of whom will be of the CTA variety as they will need to buy equities heavily if the overall SPY and QQQ bull trend extends. That would set the target at the top of the trendline for $350. $280 to $285 is the bullish pivot.
TSLA 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further range bound should not be ruled out
AUD/USD managed to regain the smile and challenged the key 0.6500 hurdle on the back of the knee-jerk in the US Dollar and ahead of key data releases in Australia and the US labour market.
EUR/USD trapped below 1.0600
EUR/USD turned lower once again on Tuesday, grappling with the 1.0500 handle as Fiber flubs a bullish run at 1.0600. Several EU-centric datapoints are releasing on Wednesday, but most of the figures are final prints that are unlikely to move markets, and most investors are pivoting to face US NFP jobs data due at the end of the week.
Gold keeps struggling for direction
Following Monday's retreat, Gold stabilizes and trades in a narrow band below $2,650. The benchmark 10-year US Treasury bond yield stays flat near 4.2% ahead of Fedspeak, making it difficult for XAU/USD to gather directional momentum.
Australia GDP growth set to accelerate slightly in Q3, dashing hopes of imminent RBA rate cut
Australian Gross Domestic Product is foreseen to be up by 1.1% in Q3 compared with the same quarter a year earlier. The Reserve Bank of Australia will likely maintain the OCR on hold until later in 2025. The Australian Dollar advances against its United States rival, sellers waiting for better levels.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.