Tesla Stock Price and Forecast: TSLA green and on course to break $800
- Tesla stock remains strong and steady on Monday.
- Stock market falls, but Tesla ignores the bears.
- TSLA stock still waiting to break above $800 and push on.
While the stock market panic continued unabated on Monday, Tesla shrugged its shoulders and got on with doing its own thing and was steadily pushing higher. The stock market was down and social media was down, well, Facebook (FB) anyway, and the market was in a state of panic. Facebook slumped nearly 5%, Apple plunged nearly 2.5%, Amazon was down nearly 3%, but Tesla was one of the few green beacons in a sea of red. Impressive then, so why the outperformance? Read on.
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First, a quick recap on the price action: Tesla stock did actually manage to get above $800 briefly just as the main session opened, topping out at $806.97. However, it could not fight the bearish tide across the Nasdaq and the S&P 500. It eventually pushed below $800 to close at $781.53 but was still up just under 1% on the day.
Tesla key statistics
| Market Cap | $767 billion |
| Price/Earnings | 404 |
| Price/Sales | 26 |
| Price/Book | 33 |
| Enterprise Value | $756 billion |
| Gross Margin | 22% |
| Net Margin |
6% |
| 52-week high | $900.40 |
| 52-week low | $379.11 |
| Average Wall Street Rating and Price Target | Hold, $704 |
Tesla (TSLA) stock news
The stock has been pretty bullish on the chart anyway, but the latest set of delivery numbers certainly helped the bulls propel the stock higher, even if they failed to hold the psychological $800 level. Tesla released delivery numbers on Monday. Deliveries were up 20% in Q3. Tesla delivered 241,300 vehicles in the quarter, which was an increase of 73% YoY, making it the sixth straight quarter of delivery growth. Wall Street analysts had expected deliveries of 229,242, so this was a comfortable beat. It was strong positive news and certainly a catalyst for the stock price.
However, news out today is not so positive for Tesla. A federal jury ordered Tesla to pay over $130 million in damages to a black former worker, as he was subjected to a racially hostile work environment, according to a report in The Wall Street Journal. "While we strongly believe that these facts don't justify the verdict reached by the jury in San Francisco, we do recognize that in 2015 and 2016 we were not perfect," Tesla said. Tesla did not respond to a Reuters query if it would appeal the verdict.
Tesla stock forecast
Despite yesterday's pullback, Tesla stock did manage to hold above the $780 high from back in April, which is now also the breakout point of the small triangle pattern that formed in the lead up to the delivery numbers. Breaking out and retracing is fine, but Tesla just needs to hold $780 to remain bullish. FXStreet will give some room to $770 before turning neutral on the stock. Some resistance will then come into play at $850 from the volume profile bars.
FXStreet View: Bullsih above $770, neutral $770 to $710.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
