CEO Elon Musk, speaking from the Gigafactory near Berlin, Germany on Friday said he hopes to begin vehicle production at the plant in October. The manufacturing facility’s construction has been delayed multiple times already due to German bureaucratic hurdles and local public resistance. The environmental agency in Brandenburg has also not given its final stamp of approval.
Friday’s pullback gave options traders a chance to load up on bullish call contracts. One bull purchased 200 calls at $15.01 per piece with a $725 strike that expires on Aug. 20. The trader paid $300,200 for the order.
The Tesla Chart: Technical traders can feel fairly confident Friday’s action is consolidation as opposed to a reversal to the downside because the pullback is happening on low volume. The pullback also allowed Tesla’s stock to cool down its relative strength index which was approaching overbought territory near the 70% mark.
A few days of more consolidation may be needed if Tesla closes Friday’s trading session with a shooting star candlestick. The shooting star candle at the top of a trend often indicates the price will fall further.
Despite the shooting star being potentially bearish for the short term, the upper wick of the candle allowed Tesla to make a higher high above $722. This indicates Tesla is trading in an uptrend despite trading lower.
Tesla is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. Tesla is also trading about 8% above the 200-day simple moving average which indicates overall sentiment in the stock is bullish.
The Tesla stock analysis is based on the TipRanks Smart Score which is derived from 8 unique data sets including Analyst recommendations, Crowd Wisdom, Hedge Fund Activity, Media Sentiment and multiple Technical stock factors. The Smart Score is a quantitative, data-driven rating system and does not include human intervention.
Based on 15 Best Performing Wall Street analysts offering 12-month price targets for Tesla in the last 3 months. The average price target is $832.29 with a high forecast of $1,200.00 and a low forecast of $180.00. The average price target represents a 16.05% change from the last price of $717.17.
Tesla disclosed 42 risk factors in its most recent earnings report. Tesla reported the most risks in the “Finance & Corporate” category.
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