- Tesla stock outperforms on Tuesday as stocks recover.
- The bounce is small as Fed news awaited.
- Tesla is stuck on neutral ground.
Tesla recovered some ground on Tuesday after equity markets took a tough beating on Monday. While broader markets struggled to bounce, Tesla stock did at least gain over 1% in a steady session. Volume was low, however, so there was not much force to the move.
This was the trend across most markets, as investors wait with bated breath for the Fed announcement later on Wednesday. Not the announcement itself but the discussion afterwards about tapering and when and how that will begin. The Fed balance sheet is strongly correlated with the stock market since the pandemic began, so any reduction or tapering could see stocks slide if the correlation continues. The Fed will be hoping this is not the case, and the underlying strength of the economy is enough to placate investors from panicking.
The 15-minute chart of Tesla below shows a fairly lacklustre session with barely a $10 range, not great for day-trading, but markets are likely to adopt a wait-and-see tone ahead of the Fed later on Wednesday. To taper or not to taper?
-637679013725573089.png)
TSLA 15-minute chart
Tesla is nothing if not innovative and rumours have been swirling recently about a location for a new giga-factory to help with ambitious growth plans. Russia was hot on everyone's lips, but Elon Musk downplayed the speculation on Monday with a tweet saying Tesla had not yet decided on a location for its new giant factory. This morning news hits the wires of Tesla planning to offer car insurance to customers, with Elon Musk tweeting that "probably next year before we get approval in New York". Tesla already offers insurance in California and rumours suggest Texas is next up. Initially, this is not likely to be significant to the bottom line and hence investors but it may have longer-term implications if the company expands the offering.
Tesla key statistics
| Market Cap | $728 billion |
| Price/Earnings | 394 |
| Price/Sales | 23 |
| Price/Book | 29 |
| Enterprise Value | $756 billion |
| Gross Margin | 22% |
| Net Margin |
6% |
| 52-week high | $900.40 |
| 52-week low | $329.88 |
| Average Wall Street Rating and Price Target | Hold, $704 |
Tesla stock forecast
Tuesday's light volume day retraced TSLA back to the $741 resistance, well just short of it. This bounce across all markets was not exactly impressive, but it was never likely to be given the imminent Fed meeting.
Risk is off the agenda for now. Tesla needs to break $763 before it turns bullish again, as that takes out the high from last week and will put $780 back into the crosshairs. Otherwise, it is stuck in neutral. Look at that volume shelf above $760, meaning a break should see a price acceleration. This can be played with an out-of-the-money call option for a 1-2 week duration, but only once $763 is broken in our view. Breaking the option-related low from Monday last week at $708 puts Tesla into bearish mode.
FXStreet View: TSLA neutral, bullish on a break of $763, bearish on a break of $708.
FXStreet Ideas: Buy a $780 call for 1-2 week expiry if $763 is broken. Buy support zone at $680.
TSLA daily 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
Gold price approaches $3,300 mark amid persistent safe-haven demand
Gold price continues scaling new record highs through the Asian session on Wednesday and has now moved well within striking distance of the $3,300 round-figure mark. Persistent worries about the escalating US-China trade war and US recession fears amid the ongoing US tariff chaos continue to boost demand for gold.
EUR/USD holds firm above 1.1350 amid renewed US Dollar weakness
EUR/USD is storngly bid above 1.1350 in European trading on Wednesday. The pair draws support from a fresh round of selling in the US Dollar amid persistent fears over US-China trade war and a lack of progress on EU-US trade talks. US consumer data and Powell speech are in focus.
GBP/USD trades at fresh 2025-high above 1.3250 after UK CPI data
GBP/USD builds on its six-day winning streak and trades at its highest level since October above 1.3250 in the European session on Wednesday. The data from the UK showed that the annual CPI inflation softened to 2.6% in March from 2.8% in February but had little impact on Pound Sterling.
Exchange inflows surge as XRP slides, what comes next?
Ripple corrected along with other major digital assets, including Bitcoin and Ethereum, and traded at $2.08 at the time of writing on Wednesday. The drawdown cut across the crypto market, causing the total capitalization to drop 3.2% to $2.736 trillion.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.