Tesla hare price extended its gains in premarket trading on Friday, rising by 0.3 percent to trade at $304.77 at the time of writing. The momentum underlying the stock is upbeat following Donald Trump’s election victory and Tesla CEO Elon Musk’s high-profile role in Trump’s campaign. The central focus for the Tesla stock buyers is based on expected friendlier EV policies when the new administration comes into office.
The EV pioneer finds itself in a wonderland of some sort, considering that its stock was on a six-session losing streak just four days ago. However, Trump’s win has triggered an upbeat perception of its growth prospects, sending it up by 17.3 percent in the last two trading sessions. However, as to whether it will be able to sustain the upward momentum is a different question.
While Trump’s policies are seen as more accommodative of American corporate innovation, none of those are Tesla-specific. If anything, his proposed tariff hikes could impact Tesla (NASDAQ: TSALA) negatively, in terms of raising the cost of component imports. Also, retaliatory measure against American products could subdue Tesla’s growth in other markets.
However, analysts opine that Tesla stands to benefit substantially from the regulatory front as it seeks to get approvals for its autonomous driving business. That remains key to its growth plans, and expedited approvals could help it stay on track to bringing cyber van and cyber cab to the markets by 2026.
In other news, Tesla announced on Thursday that it would open up the Cybertruck to leasing. Customers can now get the All-wheel drive cybertruck for $999 per month for three years. Additional charges include an acquisition fee of $695 and a downpayment of $7,500. As the model currently costs $79,999, it has been out of reach to many people. However, the lease model could help drive up revenue and potentially help drive up sales.
On the chart below, Tesla share price is likely to continue climbing up if action stays above the 299.20 pivot mark. That could see the stock encounter the first resistance at 305.95. However, if the buyers strengthen their hold of the market, the price could rise higher and test 310.20.
On the other hand, moving below 299.20 will favour the sellers. In that case, the first support is likely to be at 294.00. But if the downward momentum strengthens, the price could break below that level and invalidate the upside narrative. Also, the decline could extend and test 288.30.
This post was last modified on Nov 08, 2024, 14:51 GMT 14:51