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Tesla Rides Again (TSLA): New Highs Approaching

This post was originally published on September 14, 2017 in the Finance Trends Newsletter. Sign up to join our email list - you'll receive exclusive updates and market insights, plus the best of our website and social media content.

Tesla Inc. (TSLA) shares, which closed at $377.64 today, are trading just below their 52-week high.

A move above $387 would mark a new all-time high for the stock. That means no overhead price resistance, only the potential for blue skies above.


Here is a monthly chart (log scale, click to enlarge) that goes back to Tesla's IPO in 2010. It shows the stock's full trading history, including the breakout move from $40 to $290 in 2013 - 2014.


Tesla TSLA stock price chart monthly Elon Musk


The weekly chart below shows Tesla's recent breakout (from a long 3-year trading range) above $300 and the run up to its highs above $386.

If TSLA can hold these gains and advance an additional 4%, the stock will be trading at a new all-time high. $387 is the magic number here.


Tesla TSLA stock chart 2017 new highs breakout Elon Musk


Tesla CEO, Elon Musk sparked excitement this week with the announcement of a Tesla semi truck unveiling scheduled for late October. This marks Tesla's entry into the commercial transportation market. Production of the electric, long-haul semis will be underway "in about two years", according to Musk.

When I last posted on TSLA in late 2016, the stock was still stagnant and stuck in a rather wide trading range between $180 and $280.

At that time, the questions surrounding TSLA dealt with the Model 3 launch and mass acceptance of Tesla's products and corporate mission.

From our October 2016 update:

"...There is no doubt that Tesla Motors is an incredibly innovative and exciting company, and the Model 3 in question is a major product.
When the Model 3 is released to buyers in late 2017 and 2018, it will mark the full realization of Tesla's mission: to build and deliver an affordable electric car that will help kickstart mass adoption of electric vehicles (EVs)."

Last year, the market was still undecided about Tesla's future prospects, at least in terms of a Model 3 launch acting as a catalyst to new price highs.

However, by early 2017, Tesla shares were back above $250. In April 2017, TSLA crossed $300 and reached a $50 billion market cap, surpassing Ford (F), which has been in business since 1903 (and went public in 1956).

If TSLA can make a new high above $387, it will be a short hop to $400 and above. It should be noted that TSLA is prone to sell off in quick, sharp declines (see the plunge from $370 to $306 in July 2017) so your risk management safeguards must be in place, should you decide to buy the stock.

Tesla is among the top big-cap names in my watch list right now. I have been slowly building my exposure to US stocks in recent weeks and may add a starter position in TSLA to my portfolio sometime in the next week.

Note: Educational info is presented here, all stocks and securities mentioned are used as real-world (and real-time) case studies in trading. I offer no personalized investment advice. Readers must use their own due diligence and invest according to their unique needs and objectives.


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