Brief thoughts about TSLA:
Stock Performance: TSLA stock has experienced volatility in 2024, with an 18% decline year-to-date... that's to say nothing of the deeper decline since the all-time high reached in late 2021. Factors contributing to the general malaise around the stock include concerns about current and future EV demand, increased competition in China, and issues [legal and not] related to CEO Elon Musk.
Production and Delivery Numbers: Tesla’s latest production and delivery figures have caught investors’ attention. The company’s strategic focus appears to be paying off, but there are still challenges ahead.
Recent Rally: Despite the challenges, Tesla’s stock rallied recently, erasing its losses for the year. This positive momentum has been closely watched by traders leading to the question, “What now?”
Tesla’s stock price rose enough on Friday to wipe out its loss for the year and bring its gain for the week to 27%. Shares of the electric vehicle maker closed Friday at $251.55. They ended last year at $248.48 and proceeded to drop as low as $138.80 in April of this year.
The latest rally [shown below] was sparked by a better-than-expected deliveries report for the second quarter on this past Tuesday. While deliveries still dropped 4.8% from a year earlier, the falloff was less steep than the first-quarter decline, and gave investors reasons for optimism heading into the second half.
In April, Tesla shares hit a 52-week low after a long string of troubling developments. Sales in the core auto business fell in the first quarter, the company downsized through sweeping layoffs and there were reports that Tesla had scrapped plans to soon produce a low-cost family car at its Texas factory.
Tesla is set to deliver second-quarter financial results after the bell on July 23. Automotive gross margins are likely to be in focus.
The charts:
Recent Rally
Long-Term Trend
Weekly Support & Resistance Levels
Technical Points
TAOST Power Zones for TSLA
So there you have an update on TSLA. If you've been following me for a while, you know how to use the levels noted on the charts above to help you stay on the right side of the stock.
Questions always welcome.
Trade well.
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