Tesla Inc. (NASDAQ: TSLA) is once again in the spotlight, with Wedbush Securities forecasting a return to a $1 trillion market cap.
Analyst Dan Ives believes that Tesla’s recent progress in achieving its autonomous driving and Full Self-Driving (FSD) vision could propel the company to new heights.
With Tesla’s compensation package for CEO Elon Musk finalized, attention now turns to Musk’s incentivized ownership stake, expected to drive further innovation in AI and robotics—a pivotal area for Tesla’s future growth.
Wedbush maintains an Outperform rating on Tesla with a price target of $350, underscoring their confidence in the stock’s upside potential driven by advancements in autonomous technologies.
Tesla’s Master Plan 4
Elon Musk’s announcement of Tesla’s Master Plan 4 adds to the intrigue surrounding the company’s future.
Building on its legacy of disrupting industries, Tesla’s fourth master plan is anticipated to be “epic,” following a series of ambitious initiatives spanning from electric vehicles to energy solutions.
However, Tesla’s recent developments are not without challenges.
Legal battles with former suppliers and ongoing regulatory hurdles underscore the complexities of Tesla’s operations amidst its expansion and innovation efforts.
Assessing Tesla’s Fundamental Landscape
Tesla’s fundamental performance reveals a mixed picture. While the company has made significant strides in its energy segment, marked by record battery storage deployments and promising profitability trends, its automotive division faces headwinds.
Recent price cuts across Tesla’s vehicle lineup highlight competitive pressures and evolving market dynamics, contributing to concerns about shrinking margins and lower-than-expected delivery volumes.
Financially, Tesla’s earnings have fluctuated amid investments in new vehicle models and AI infrastructure, impacting short-term profitability.
Analysts remain divided on Tesla’s outlook. While some advocate for cautious optimism, citing potential catalysts like the upcoming Robotaxi Day and advancements in FSD technology, others caution against Tesla’s steep valuation relative to its industry peers.
As we delve deeper into Tesla’s strategic outlook and market dynamics, the next step in our analysis turns to the charts. Technical analysis will provide critical insights into Tesla’s price trajectory, shedding light on potential support and resistance levels amid broader market trends.
By examining historical patterns and key technical indicators, we aim to offer a comprehensive perspective on whether now is the optimal time to buy Tesla stock or await further developments.
Resistance at $198.50 support at 167.4
On Tesla’s hourly chart, we can see that after falling below the $200 level in late January this year, Tesla’s stock has found significant resistance at the $198.5 level. It has tried multiple times to breach it but failed.
Source: TradingView
Following the company’s most recent earnings announcement in April, the stock surged from around $167 to $198.5 and since then has taken support near $167.4 multiples.
Currently, technical indicators are not displaying strong momentum in either direction suggesting the stock can continue to be range-bound for some time.
Investors who want to purchase the stock can buy it at current levels but must be aware that a significant uptrend will emerge only if the stock gives a daily closing above $198.50.
Short-term traders can take advantage of this range, by selling the stock when it approaches the top end of the range and buying it near the lower range.
They can keep their stop loss a few cents below $167.4 for long positions and a few cents above $198.5 for short positions.
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