Looks like Tesla stock has behaved similarly to the historical pattern mentioned in my last idea. Post Q3 earnings surprise, shares surged ~30% to $340 and now are in normal fib retracement of 38.2% back in the $305-$315 range. Given the imminent start of Shanghai Gig Factory production, pickup truck unveil and Q4 typically being the best quarter for automakers, I expect the shares to see strong support in this range and make its way towards $360 by December and potential breakout above $400 pending Q4 deliveries / earnings in January 2020.
Shanghai Gig Factory will allow Tesla to achieve higher margins (no tariffs into China and lower logistics costs) and accelerated sales growth and market penetration (faster deliveries). Model Y is ahead of schedule and will also open up the largest segment of the auto market for Tesla.
2020 should be an exciting year for Tesla bulls.
Shanghai Gig Factory will allow Tesla to achieve higher margins (no tariffs into China and lower logistics costs) and accelerated sales growth and market penetration (faster deliveries). Model Y is ahead of schedule and will also open up the largest segment of the auto market for Tesla.
2020 should be an exciting year for Tesla bulls.