Tesla is one of those stocks that everyone loves to hate and hates to love. With outrageous valuations, rarely a day goes by without an “expert” on TV telling us once again why this stock should be avoided.
So how do we explain that the stock is right near all time highs? Again? Is the entire investing market crazy – or are they being duped? Not if they’re making money on this name.
After February’s earnings report, the chart shows a nice trend of higher highs and higher lows (at the 50 ma). Even after last week’s drubbing, the buyers came back strong, and now a nice pattern has emerged. The gap from earnings is nearly filled, and a MACD buy signal is now in place and confirmed. Relative strength has a nice, steep slope.
In short, Tesla has better price action than the market, so money will continue to flow into the name. As a result, we should see new highs soon.
Tesla (Nasdaq:TSLA) Video Chart Analysis
Take a deeper dive into the chart action on tech stock Advanced Micro Devices Nasdaq: Tesla and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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About Tesla
Tesla, Inc. designs, develops, manufactures, and sells electric vehicles and energy storage products in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. It primarily offers sedans and sport utility vehicles. The company also provides electric vehicle powertrain components and systems to other manufacturers; and services for electric vehicles through its 135 company-owned service centers and Service Plus locations, as well as through Tesla Ranger mobile technicians. It sells its products through a network of company-owned stores and galleries, as well as through Internet. In addition, the company offers energy storage products, such as rechargeable lithium-ion battery systems for use in homes, commercial facilities, and utility sites. Further, the company designs, manufactures, installs, maintains, leases, and sells solar energy systems to residential and commercial customers through a sales organization that include specialized internal call centers, outside sales force, a channel partner network, and a customer referral program, as well as through selected Tesla stores. Additionally, it sells renewable electricity generated by solar energy systems to customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California.
