Tesla is a hot topic this week as its market capitalisation rose above $1 trillion. So, Tesla has lined up among other giants, such as, Apple ($2.47 trillion of market cap), Microsoft ($2.33 trillion), Saudi Aramco ($1.99 trillion) and Amazon ($1.71 trillion). However, by revenue Tesla comes takes the 89th place on the companies list of S&P 500.
Tesla stocks peaked $1094.77 on Tuesday. Such a lift off in prices was prompted by the positive Q3 financial results of the company and by the massive 100,000 vehicles order for $4.2 billion by Hertz car rental company. The company’s revenue in Q3, 2021, almost doubled to $13.8 billion and its net profit topped $1.62 billion compared to $331 million a year before.
Investors are still betting on electric vehicles that would replace the classic ones with combustion engines, while competitive advantages of Tesla would enable the company to get a significant share of the new market.
Moreover, Tesla is planning to aggregate its electric car fleet that is sold in Europe with British JLR car manufacturer, that has joined Honda in a deal with Tesla to lower carbon emissions. It is worth noting that Tesla’s revenues are replenished by selling carbon emission quotas to other car manufactures in order to help them meet environmental requirements.
Considering the scope of Tesla’s plans, we may suggest that its stocks may reach new records after rising by 39% at the end of October. Among potential price targets of $1123.40 and $1260, 161.8% and 200% of Fibonacci retracement may be highlighted to the correction lows at $539.49. The first target is already in sight but moves towards the second target may be seen closer to the year-end or even in the beginning of the year to come.Nevertheless, I must note that the reverse testing that has broken through the resistance at $900.40, is needed for Tesla stock prices to move further up. This level was the previous high and it was passed upward with a gap that may indicate the speed up of the prices rally. Technically, this important level should be retested. So, I would suggest to everybody who has not bought Tesla shares recently to wait for such a retest to the $900-940 zone, where the October 25 gap is located together with the fast-moving average EMA21 on the daily chart.
Buy operations close to EMA21 on the daily chart would provide the optimal entry point. As for the moment, Tesla stocks are seen a little overbought.
Tesla stocks peaked $1094.77 on Tuesday. Such a lift off in prices was prompted by the positive Q3 financial results of the company and by the massive 100,000 vehicles order for $4.2 billion by Hertz car rental company. The company’s revenue in Q3, 2021, almost doubled to $13.8 billion and its net profit topped $1.62 billion compared to $331 million a year before.
Investors are still betting on electric vehicles that would replace the classic ones with combustion engines, while competitive advantages of Tesla would enable the company to get a significant share of the new market.
Moreover, Tesla is planning to aggregate its electric car fleet that is sold in Europe with British JLR car manufacturer, that has joined Honda in a deal with Tesla to lower carbon emissions. It is worth noting that Tesla’s revenues are replenished by selling carbon emission quotas to other car manufactures in order to help them meet environmental requirements.
Considering the scope of Tesla’s plans, we may suggest that its stocks may reach new records after rising by 39% at the end of October. Among potential price targets of $1123.40 and $1260, 161.8% and 200% of Fibonacci retracement may be highlighted to the correction lows at $539.49. The first target is already in sight but moves towards the second target may be seen closer to the year-end or even in the beginning of the year to come.Nevertheless, I must note that the reverse testing that has broken through the resistance at $900.40, is needed for Tesla stock prices to move further up. This level was the previous high and it was passed upward with a gap that may indicate the speed up of the prices rally. Technically, this important level should be retested. So, I would suggest to everybody who has not bought Tesla shares recently to wait for such a retest to the $900-940 zone, where the October 25 gap is located together with the fast-moving average EMA21 on the daily chart.
Buy operations close to EMA21 on the daily chart would provide the optimal entry point. As for the moment, Tesla stocks are seen a little overbought.
Trade closed: target reached
