Tesla shares hit a record high, driven by a 69% surge since Trump’s election victory
FUNDAMENTAL OVERVIEW:
Tesla shares soared to a new all-time high on Wednesday, surpassing their previous peak in 2021, fuelled by a post-election rally and growing optimism on Wall Street about Elon Musk’s electric vehicle company.
The stock climbed to a closing record of $424.77, roughly $15 higher than its previous peak of $409.97 on November 4, 2021.
Tesla’s market value has surged by approximately 71% this year, with nearly all of those gains occurring since Donald Trump’s election victory in early November. The stock’s 38% rally in November marked its strongest monthly performance since January 2023 and its 10th best on record.
Tesla’s rise to a record high represents a stark contrast to its performance earlier in the year. The company’s shares dropped 29% in the first quarter of 2024, marking the worst quarter for the stock since late 2022 and the third worst since Tesla’s IPO in 2010. During that period, investors were worried about Tesla’s core business, which saw a decline in revenue in part due to growing competition from China.
In its third-quarter earnings report in October, Tesla announced an 8% year-over-year revenue growth, slightly missing estimates. However, the company exceeded profit expectations.
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TESLA TECHNICAL ANALYSIS H4 CHART:
Technical Overview:
Tesla is trading within a up channel.
Tesla is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 425.84
Immediate support level: 400.00
HOW TO TRADE TESLA
Tesla’s stock price has experienced a significant uptick after finding support at lower levels. This upward momentum has driven the stock price above previous resistance levels, pushing it into overbought territory. While this overbought condition could lead to a temporary correction or pullback to the recent support level, the underlying bullish trend suggests that the stock may continue its upward trajectory.