Tesla (TSLA.us) Charts Primary Uptrend
- TSLA.us has charted a higher trough (HT) followed by a higher peak (HP) on its monthly chart.
- This puts the chart into primary uptrend.
- Its monthly RSI has popped above 50 (blue rectangle).
- This is the bullish side of the oscillator.
- The longer it maintains on this side, the greater the likelihood of higher prices ahead.
Tesla Weekly Analysis
- Tesla's trend-following weekly moving averages have crossed bullishly (top black ellipse) and are developing angle and separation to the upside.
- Its momentum-based stochastic has also crossed up (bottom black ellipse) and has moved above 70 (red arrow).
- This denotes an underlying bullish momentum.
- The longer the stochastic maintains this position, the greater the likelihood of higher prices ahead.
TSLA.us is up 145% since its January low. The stock is benefiting from enthusiasm around tax credits, its charging network, and the Cybertruck.
All versions of the Model 3 now qualify for a full $7,500 tax credit. This makes the car cheaper for buyers and is because of an update from the Internal Revenue Service. Previously the standard range qualified for only a $3,750 credit.
TSLA.us has also agreed to let GM's electric vehicles use its supercharger network. This follows a similar deal concluded with Ford. In effect, Tesla's network is becoming the standard for the US.
There is a positivity around Cybertruck sales and demand after Electrek reported that TSLA.us was looking to produce 375,000 Cybertruck units per year. Wall Street had forecasted 250,000 or fewer.
Tesla's price-to-earnings ratio is 67.2, which is higher than its peers. However, its projected earnings growth is close to 20% and its return on equity is expected to be 24.8% in 3 years. The market is currently focusing on the positive news from the company.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.