Price of Tesla Shares: Despite Compensating Tesla Falls, Unable to Maintain Its Stability
Elon Musk started producing electric vehicles with Tesla in 2008 and achieved all of them by setting big goals. Tesla, which has become popular and attracts great attention, is constantly breaking records for quarterly deliveries. Tesla set a new record by delivering 184,800 vehicles in the first quarter. On top of that, it managed to break its previous record by delivering 201,250 vehicles in the second quarter. With this increase, deliveries increased by 120% compared to the previous year. However, the price of Tesla shares fell 3% despite posting profit on July 2. Again, it has closed this decline since then.
Our current focus is on Tesla’s July 2nd quarter reports. It was adjusted earnings of 95 cents per share, a 120% increase over the previous year. It aims to reach $11.32 billion, up 89%. Chinese demand is also an important factor in this goal. On the one hand, Tesla is trying to deal with consumer complaints and recalls. However, we do not know how China, one of the major factors in Tesla’s growth, will affect the course.
Can Tesla Manage the Global Chip Maidens?
After the delivery report was released, Baird analyst Ben Kallo did not change his outstanding performance rating on the price of Tesla shares, with a price target of 736. The price of Tesla shares is currently trading around 660.
Kallo cited Tesla’s success in effectively managing industry-wide semiconductor shortages and shipping issues in Q2. He also noted that the company provided strong interactions in China in the last quarter.
We’ve seen publications that Tesla is taking unusual steps to overcome a global chip shortage. Sources told the Financial Times that the company is ready to pay upfront for the chips to make sure it has enough of the critical material. Tesla is even considering buying a chip plant for it.
Meanwhile, China-based Tesla rivals Nio (NIO), Xpeng (XPEV), and Li Auto (LI) recently reported strong second-quarter deliveries.
Tesla Stock Analysis
The price of Tesla shares has a Relative Strength Rating of 79. In addition, the rating follows market leadership. The rating compares a stock’s price action over the past 52 weeks to other stocks.
Accumulation/Distribution Rating is B. This rating tracks changes in price and volume over the last 13 weeks of a stock’s trading. The highest grade, A, indicates heavy corporate buying. The lowest E grade means heavy selling and the C grade is a neutral or average grade.
Among other Tesla data points, the relative strength line is trending sideways to reflect it’s outperforming against the S&P 500. The RS compares one stock to all the stocks in the S&P 500. The RS line generally forms on the strongest stocks. It also either confirms a stock’s price or directs it to a fresh rise.
The outlook for on price of Tesla shares is good for now. However, the most important concept in the stock market is timing. Therefore, when looking for stocks to buy and sell, you should buy a stock with low risk and good rewards. At this point, you should be able to do both fundamental and technical analysis.
Why Shouldn’t You Buy Tesla Stock Right Now?
Tesla stock is finding support at its 10-week moving average as it breaks new ground. However, it’s not a good buy at the moment. Also, the price of Tesla shares has recently climbed above its 50-day moving average. The S&P 500 is holding above support at the key 50 and 200-day moving averages. If it can gain strong support at these levels, Tesla stock could be bullish. For Tesla stock price, we can call the buy point 675. The course of the stock you bought from this point extends to 708.75.
Before creating any investment plan, you should first follow the market. Then you should do a good fundamental and technical analysis. You can check whether any stock has passed the Fundamental and Technical analysis from the IBD Stock Checkup.