is showing continued strength after the correction from high $900's to high $600's. The stock formed an ascending triangle
and recently broke out today on news of the $2bn stock offering. This capital raise further strengthens the balance sheet
and enables the company to accelerate growth projects (Giga Texas? Battery Cell Manufacturing? Semi/Cybertruck? Model Y/Roaster?). Additionally, Musk and Ellison bought into the offering which is a further vote of confidence given they know much more about the company than the public. The market is reacting favorably to all of this.
As we move towards Q1'2020 deliveries and earnings
, the stock should move higher given the longer-term trend ("the trend is your friend") and I believe the stock will form a large ascending triangle
as seen from my chart. If Tesla
beats on both events + Battery Day in April 2020, you'll see more analysts turn bullish
which will propel the stock higher. If this plays out, the next leg will move towards $1,600. The first move went from $250 to $970, which is about $700 move. If you apply this to where the stock will settle at the end of this ascending triangle
($900-950) then you'll get something around $1,600.
Exciting times ahead for Tesla