Tesla Stock News: TSLA breaks above $200 as Elon Musk visits China

Tesla stock moves above $200 in Tuesday premarket.
US legislators have compromised with President Biden over the debt ceiling.
Elon Musk meets with the Chinese Foreign Minister in Beijing.
NHTSA investigation into passenger play has been dropped.

Clay Webster FXStreet

Tesla (TSLA) stock has overcome a major psychological barrier to start the week with shares overcoming the $200 level early Tuesday. A number of tailwinds are aiding the growth stock, which has gained 4.4% to $201.67 in the premarket.

NASDAQ 100 futures have gained 1.5% at the same time as Nvidia (NVDA) has broken into the $1 trillion market cap basket of stocks.

Tesla stock news: Musk arrives in China

CEO Elon Musk landed in China on Tuesday to observe his company’s operations in the world’s biggest electric vehicle (EV) market. Musk met with Chinese Foreign Minister Qin Gang in Beijing first though. Musk joined the official in stating that the US and Chinese governments needed to work from “mutual respect” at a time of enmity between each administration.

Musk is hoping to meet with Premier Li Qiang to convey his company’s interest in launching Tesla’s autonomous driving technology in the country. Tesla is also slated to begin trial production of a larger version of its Model 3 sedan at its Shanghai factory in the near future.

The stock market is excitable this first day of the trading week as US politicians hammered out a compromise to raise the debt ceiling over the weekend. That removes one major headwind for markets and could lead to a rally in equities this week.

Another headwind out of the way is the top automobile regulator in the US closing an 18-month-old investigation into Tesla. In December 2021, the National Highway Traffic Safety Administration began investigating Tesla’s “passenger play” feature that was said to allow drivers the ability to play video games on the center console while the vehicle was in motion. Tesla sent a software update at that time, and the NHTSA said on Tuesday that it is closing the case.

Tesla stock forecast

Tesla stock has not traded above $200 since April 3, about two months ago. To break out of its downtrend, TSLA needs to close above the $207.79 high from March 31. Then February resistance at $214 will be the next target for bulls. Support can be found between $180 and $190, where there is plenty of historical volume.

TSLA daily chart

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Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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