- Summary:
- Tesla stock price has gained more than 70 percent since Donald Trump won the presidential election. Rising China sales have added fuel.
Tesla stock price rose to new record highs in the premarket session on Thursday, as it traded at $426.85 after gaining 0.58%. The stock is still riding on the momentum generated by Donals Trump’s election victory and has gained more than 70% since the November 5 elections.
China sales and AI innovation sustain Tesla stock upside
In a clear demonstration of a season of wins for Tesla, the EV manufacturer is also experiencing an uptick in sales in China. The company sold 21,900 units in the first week of December, the highest number in the fourth quarter of the year.
The spike in sales came amidst a 10,000 yuan discount on Model Y loans, which is likely to improve its performance in its second-largest market. The company’s sales in China plummeted in the first half of the year, and the turnaround in performance signals a strong upside potential for the stock price.
Tesla’s focus on Full Self Driving (FSD) technology and humanoid robots has seen it transform into a hybrid of AI and car manufacturing giant, which gas given it leverage in the EV race. The FSD front opens up a substantial market for Tesla (NASDAQ: TSLA). That’s because its revenue stream will be not only from vehicle sales, but also licencing income from other manufacturers.
With its recent gains, multiple analysts have been revising upwards their price for Tesla stock price. The latest notable raise was by a Goldman Sachs analyst, who moved his target up to $345 from $250. This trend has strengthened the bullish sentiment around TSLA, adding propulsion to the upside view.
Tesla stock price
Tesla stock price pivots at $420, and the RSI indicator calls for further upside. With the buyers in control, the stock will likely encounter the fisr resistance at $430. However, an extended upward momentum could break above that level and test $435.
Alternatively, the sellers could take control if the price breaks below $420. If that happens, the first support could be established at $414. However a stronger downward momentum could break below that level and invalidate the upside narrative. That could take the price lower to test $410.
