NASDAQ:TSLA - Tesla the "EV Maker" has seen a massive comeback from the low 100s. Tesla tested the $200 mark in February after which we have seen approximately 30% correction which partially filled the gap created in January.
Per the diagram we can see that Tesla NASDAQ:TSLA is forming a classic extended broadening wedge pattern, which can indicate consolidation before continuation to the upside.
There is significant hype around AI since ChatGPT since launch. We believe Tesla is well positioned to take advantage of the AI revolution.
Tesla has made significant progress in AI specifically with their self driving capabilities. Tesla has an abundance of data due to their extensive fleet of vehicles on the road, collecting data daily. This data is used to train its AI algorithms, enabling Tesla to develop more refined and accurate models over time. As of 2023, Tesla has gathered data from over 35 million Full Self-Driving (FSD) miles driven by its fleet, giving it a significant data advantage over competitors. Remember your AI models is only as good as the data you can train it on. Proprietary datasets are gold in the AI/Machine learning world.
Tesla's ultimate ambition is to establish a Robotaxi service, where Tesla cars function autonomously without the need for a human driver. Success in this endeavour is not guaranteed, but should they achieve this goal, it could provide Tesla with a substantial competitive edge in the electric vehicle market. In addition to this, Tesla has Optimus (AI robot), but we shall not dive into that in this thread.
Tesla plans to grow vehicle deliveries by more than 50% in 2023. The company also expects to see a significant growth in its energy business and is planning to expand its production capacity.
The company is also making progress on its Semi and Cybertruck, with deliveries expected to begin soon.
Tesla's new factory in Mexico is also expected to increase the company's production capacity and produce electric vehicles based on Tesla's new vehicle platform. (Low cost vehicle platform.
Entry points: Accumulation of entries between $168 to $196. Ultimate confirmation would be a daily/weekly break and close above the wedge line.
Targets: TP1: $242 - 0.618 Fib Retracement TP2: $306 - 0.786 Fib Retracement - this also aligns with an order block between $294 & $312. TP3: $376 - Just under 10% away from its previous ATH Stop Loss: $163 - Wide stop loss due to volatile nature of Tesla
Leverage: Max 5x - I personally use a combination of spot holdings and 5x leverage to take advantage of shorter term swings.
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TP1 - Achieved Move stop loss to break even for a risk free trade.