While Tesla has bounced around a wide trading range for the last few years, the stock will ultimately break out to new ATHs upon achieving positive Q4 earnings, which we'll know of in the next 2-3 weeks when those figures are released.
On the technical side, you can see a double bottom which occurred last month at $300 and a bull flag formation which will complete ahead of earnings as investors await results. If Tesla does achieve positive Q4 earnings, the bear thesis weakens, which has been that the company's business model is unsustainable and they will go bankrupt soon. There will be a significant short squeeze given the stock is one of the most shorted stocks (>25% short of float) and new kinds of investors will end up buying in that weren't able to previously.
Additionally, there are several catalysts that will help boost the stock in the near-term. Tesla will be unveiling the Model Y in March 2019 and possibly the Tesla Pickup Truck as well. They just broke ground on a $5bn manufacturing facility in Shanghai which their aiming to complete by Summer 2019 and are slated to deliver 3,000 Model 3s a week in Europe by next month. Also, the company is still ramping up Model 3 production in the US in which it just became the best selling luxury sedan. The company continues to improve its autonomous driving features, user interface, mobile app, and is expanding their charging infrastructure.
Another noteworthy observation is that TSLA shot up ~20% since October while the rest of the tech stocks fell 25-35% over the same period. We'll see what happens with all eyes on Q4' 2018 earnings and guidance coming end of January / beginning of February.
On the technical side, you can see a double bottom which occurred last month at $300 and a bull flag formation which will complete ahead of earnings as investors await results. If Tesla does achieve positive Q4 earnings, the bear thesis weakens, which has been that the company's business model is unsustainable and they will go bankrupt soon. There will be a significant short squeeze given the stock is one of the most shorted stocks (>25% short of float) and new kinds of investors will end up buying in that weren't able to previously.
Additionally, there are several catalysts that will help boost the stock in the near-term. Tesla will be unveiling the Model Y in March 2019 and possibly the Tesla Pickup Truck as well. They just broke ground on a $5bn manufacturing facility in Shanghai which their aiming to complete by Summer 2019 and are slated to deliver 3,000 Model 3s a week in Europe by next month. Also, the company is still ramping up Model 3 production in the US in which it just became the best selling luxury sedan. The company continues to improve its autonomous driving features, user interface, mobile app, and is expanding their charging infrastructure.
Another noteworthy observation is that TSLA shot up ~20% since October while the rest of the tech stocks fell 25-35% over the same period. We'll see what happens with all eyes on Q4' 2018 earnings and guidance coming end of January / beginning of February.