Tesla stock price came within touching distance of the $400 mark in the pre-market session on Monday. The stock had reached highs of $399.49 at the time of writing, signaling a potential extension of its winning run to three successive sessions.
Tesla (NASDAQ: TSLA) formed a cup and handle pattern last week, and Monday’s pre-market rise means the price has exceeded the pattern’s price target. This affirms a strong bullish momentum around the stock. That could trigger debate about whether the company’s intrinsic value is depicted accurately in the stock market.
The latest uprick by Tesla stock price follows Bank of America’s (BofA) move to upgrade the price target by $50 to $400. BofA analyst attributes the revision to a visit to the company’s Giga Factory and a test drive of its full self drive (FSD) cyber van. According to the analyst, the company’s humanoid robot, Optimus is also on schedule for the mass market.
Critically, Tesla’s infrastructural setup sets it on course to begin mass production of FSDs in 2025. Tesla began rolling out its FSD version 13 a week ago, an improvement it says reduces driver intervention per mile by up to six times. BofA isn’t the only investment guiant that has turned bulish on Tesla. Last week, Stiffel raised its price target for Tesla stock from $285 to $411, maintaining a “buy” rating and attributing it to a “clearer path” for the cyber cab.
Tesla’s diversification has seen it become a hybrid tech company dealing in car maufacturing as opposed to a pure car manufacturer. That has seen the market attention shift from focusing purely on vehicle sales numbers to milestones on the FSD front.
The sentiment around the technology is such that last week’s Delaware Court ruling against Elon Musk’s $56 billion pay package has hardly dented Tesla stock price. That is unlike what happened in January when Judge Kathaleen McCormick first ruled against the pay.
On the downside, Tesla stock price could face headwinds if the Trump administration cancels the $7,000 tax credit on EVs. The move would make Tesla (NASDAQ: TSLA) and other EVs more expenside and remove the current leverage they have over hybrids and gas-powered vehicles.
Pivot: Tesla stock price prvots at $394.70. Action above this level will favour the buyers. Otherwise, the sellers will be in control.
Resistance: The first resistsance is likely to come at $400.25. However, extended control by the buyers could drive TSLA to test $405.00.
Support: The first support will likely come at $390. A break below that level will invalidate the upside narrative. Meanwhile, the price could decline further to test the second support at $382.70.
This post was last modified on Dec 09, 2024, 14:41 GMT 14:41