- Tesla stock makes steady gains despite market weakness.
- TSLA is ready to test the $780 resistance level.
- Elon Musk asks workers to go super hardcore for delivery push-Reuters.
Tesla stock again outperformed the broad market on Thursday and closed just in the green, while the main indices closed in the red. Tesla shares were pretty steady for much of Thursday's session with little volatility. The stock had been boosted on Wednesday by news of Chinese delivery data for Tesla. The company delivered 44,264 China-made cars in August, an increase from sales of 32,968 in July, according to the China Passenger Car Association. Chinese demand for electric vehicles appears to still be growing strongly as Reuters reported that Chinese sales of China-made electric vehicles rose nearly 50% in August.
Cathy Wood is reported to be taking some profits in Tesla as her ARK funds have apparently sold nearly $138 million worth of Tesla shares over the last two sessions. It should be noted, however, that this is likely some fund tweaking as ARK holds much larger positions in the stock. To put it into perspective the sales amount is circa 180,000 shares, the volume in Tesla yesterday was over 14 million shares traded, so it is just a small change.
Elon Musk tweeted on Thursday that a Model S Plaid just set a new lap record at the Nurburgring track in Germany.
Tesla key statistics
| Market Cap | $745 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
Holding above $741 is now our key short-term trading level. Above this we are bullish on the stock with $780 the interim target for resistance. This $741 level also correlates nicely with where the 9-day moving average will sit today. We can clearly see the up channel that Tesla is trading in, and $780 is close to the top of the channel. Volume remains light above $750, so it should set Tesla up for further gains.
The call: bullish above $741, less bullish until $730, neutral below $730, turning slightly bearish on a break below $700. There will be an opportunity to buy the dip at $741 with a stop around $730.
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
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.