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- 1 TSLA stock price: The shares have experienced a long bullish trend since the start of this year
- 2 The company has been growing exponentially well over the quarters, see the highlights below
- 3 The current stock price is just near the resistance level with a possible breakout, check before its late
Last Monday, Tesla (NYSE: TSLA) announced that it had delivered about 435,000 vehicles in the second quarter. It is slightly below Wall Street estimates by 20,000 and around 6% lower than the previous quarter’s deliveries. The company attributed this decrease in deliveries to scheduled downtime for plant upgrades and kept its full-year delivery estimate of 1.8 million vehicles.
During market activity last Wednesday, Tesla’s stock rose by 5.2% to $261. The stock cleared its 50-day moving average price of $250 and reached near its immediate resistance levels. That turned the investors’ heads around for a while.
What’s Underneath the Carpet?
Now, uncovering the carpet of price movements, the driver behind the trend is mainly the financials on a longer duration and in the case of Tesla, this statement fits right in. During this uptrend since January, the 2 quarterly reports were released with consistent growth. The company reported a sales growth of 47% year on year in the latest quarterly report of June 2023 despite the decline in deliveries.
Meanwhile, this growth was later transferred to a net income of $2.8B, with a growth of $19.8%. Until this writing, tesla is re-investing 100% of its Net income and is not paying dividends to its shareholders.
The acceptance from the market
The market accepts this high growth and it is reflected in the inflated price-to-earnings ratio of 73.7. Considering the EV industry is overvalued around the globe, and Tesla is the leading name in this sector, this is not unusual.
Technical Analysis and Prediction of the TSLA Stock Price
The Current TSLA stock price is trading at $260, just below its immediate resistance of $277. After the bulls reclaimed this resistance in September, instead of making a low till its support level, they reclaimed the trendline in the middle. Meanwhile, the RSI is currently at 54, 16 points away from reaching its oversold level. It states that the Bulls have enough room to make a breakout.
With the clear indication of bullish strength from the above-stated scenarios, the TSLA stock price prediction is bullish. The resistance of $277 is likely to be broken soon if the bulls keep surfing the current trendline. However, if the bears reclaim the resistance level, some correction can also be observed
Conclusion
The Tesla (NYSE: TSLA) stock price has been performing well recently, following the uptrend in the shares, the company has also delivered great financials over the months. The current price is near a resistance and it is predicted that a breakout is likely to occur.
Technical Levels
Support: $219, and $166
Resistance: $277, and $314
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
