Tesla (TSLA) Stock Price and Forecast: Why is Tesla going to break $800?
- Tesla stock closed up on Wednesday but nothing too dramatic.
- TSLA is still just about on course to test $800.
- The electric vehicle stock faces some key delivery data.
Tesla stock (NASDAQ:TSLA) closed higher on Wednesday as US stocks staged a post-lunch turnaround, with the main indices turning green after some shaky losses earlier in the week. The overall mood remains cautious, as investors fret over the US debt ceiling and rising yields. Tesla put in a fairly choppy session on Wednesday, as we can see from the 15-minute chart below.
Despite the overall gloominess in the market, Tesla managed to open well and pushed higher initially nearly reaching $795 early in the session. But the stock zigzagged for the remainder, before closing at $781.31 for a gain of just under 0.5%.
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Tesla (TSLA) stock news
There was quite a bit of news flow on Wednesday for TSLA stockholders, with reports from Business Insider that Tesla was due to receive conditional approval to build a plant near Berlin. However, the Environment Ministry of Germany Brandenburg later appeared to downplay this, saying consultations on a Tesla plant are ongoing and a decision on approval cannot be preempted, as reported by Reuters.
Separately, many retail traders' attention was diverted to another car maker, Lucid (LCID), as the company said it has enough funding until the end of 2022 and is on track to meet 2022 and 2023 production goals. Lucid is seen as a potential rival to Tesla.
Tesla key statistics
| Market Cap | $783 billion |
| Price/Earnings | 394 |
| Price/Sales | 23 |
| Price/Book | 29 |
| Enterprise Value | $756 billion |
| Gross Margin | 22% |
| Net Margin |
6% |
| 52-week high | $900.40 |
| 52-week low | $329.88 |
| Average Wall Street Rating and Price Target | Hold, $704 |
Tesla (TSLA) stock forecast
The longer-term trend channel remains in place, so traders must keep an eye and know what they are trading with, even in much-shorter timeframe. Tesla remains above the 9-day moving average, but it would need to see the high from this week at $799 taken out to get more momentum into the move. Once above $800, this will likely see increased attention for TSLA stock and bring in momentum traders. It also brings Tesla stock deeper into a light volume zone, meaning more gains should quickly follow.
Let's not get too excited here, but breaking $800 brings resistance at $850 next, and eventually to all-time highs at $900. We remain bullish on this one with decent support in the event of a turnaround back at $740.
FXStreet View: TSLA bullish, neutral below $765.
TSLA daily chart
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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.
