Tesla Stock News and Forecast: TSLA trades ahead of Nasdaq to start the week

UPDATE: TSLA stock has traded up 1.7% in the first hour of Monday's session, about 50 basis points ahead of the Nasdaq Composite. The market overall appears rather upbeat. All three major indices are green. The Nasdaq, known for having more high-growth tickers, is slightly ahead of the S&P 500 and about 30 basis points ahead of the Dow index. This would seem to show that risk is back in play to start the week. TSLA shares are exchanging hands just below $305. TSLA appears to be popular with the retail crowd and has started the week as a top ticker on the WallStreetBets Reddit community. 37,420 call contracts expiring on September 16 for the $305 strike price traded so far on the day. The last price was $6, up 32% from Friday.

Tesla (TSLA) stock closed up 3.6% on Friday as the equity market continued its path to recovery. Monday may see a quieter session ahead of Tuesday's blockbuster CPI report, which should set the tone for perhaps the next month in equity markets. Oil prices are falling, bond yields are stabilizing, and the VIX is steady – all of which seem to indicate that we could be in for an extended rally into the Q3 earnings season in October. Bitcoin has already moved higher as it powerfully retook the $20,000 level last week and has added another few percentage points over the weekend. All of this should see risk assets and especially high beta ones like Tesla move up over the next few weeks. Hence, this is why I have closed my short positions in Apple (AAPL) and Tesla.

Tesla (TSLA) stock news

The news flow last week was positive overall for Tesla. China deliveries tripled in August versus July to 76,965 cars versus 28,217 in July. Tesla increased production at its Giga factory in Shanghai, and this comes despite more lockdown and heatwave restrictions that took place during August in China. A strong statement of intent from the EV leader. Data from China showed car sales were up over 30% for August 2022 versus August 2021 but fell versus July. This was mentioned due to lockdowns and interruptions due to heatwave restrictions.

But overall it appears for now car sales and EV sales remain strong in China. EV sales are up over 100% from a year ago in China and up 12% versus a month ago. Having seen the Shanghai plant ramp up production, Tesla has reportedly now focused on Giga Nevada to ramp up production to the next level. Tesla has appointed a new Head of Operations who will report directly to Elon Musk.

CNBC reports that during an internal meeting that the new boss for Nevada and Freemont California said that August was a record for the Freemont factory. He also mentioned new milestones for the Gigafactory in Berlin. All of which sounds notably bullish. 

Tesla (TSLA) stock forecast

Things are starting to look interesting here. A double bottom has been put in at $266, and now TSLA has retaken its 50 and 200-day moving averages. Next up is the powerful double top at $314. A break there should get the move going and draw in momentum players, many of whom will be of the CTA variety as they will need to buy equities heavily if the overall SPY and QQQ bull trend extends. That would set the target at the top of the trendline for $350. $280 to $285 is the bullish pivot. 

TSLA 1-day chart