- Tesla stock up 2% on Thursday to above $715 resistance.
- Nasdaq: TSLA is poised for a serious move higher to test $780.
- Tesla is strong early on Friday breaking $727.
Update: Tesla is continuing to trade exactly as we had been hoping with a move to take out the highs from the start of the wedge formation at $726.94 as the stock is up just under 1% in the first 30 minutes of the regular session on Friday. moving nicely and targetting our next resistance at $780. Volume thins out above $740 as we have been saying so get ready for a potential acceleration.
Tesla put in a nice day on Thursday, once again outperforming the general market as the electric vehicle sector leader popped over 2%. Tesla stock had been coiling and consolidating above $700 since it broke above that psychological level after a strong set of results. Tesla earnings were strong with a beat on the top and bottom lines. Adjusted earnings per share (EPS) came in at $1.45 versus the estimate from Wall Street analysts for $0.96. Sales came in at $11.96 billion, also beating the $11.21 billion estimate. Delivery numbers were high on investors' minds, and these too were ahead of estimates. Tesla delivered 201,304 vehicles in Q2 2021, an increase of 121% over the same period last year. Tesla said its average selling price had declined by 2% over the year, but its gross margin increased three percentage points from 25.4% to 28.4%. Jefferies liked what it saw in the numbers and increased its rating on the stock earlier this week, which gave Tesla stock a decent 2% gain on Monday. Since then it has been steady though until Thursday's breakout. We can see clearly on the chart below how Tesla stock consolidated above $700 after the strong earnings move. The stock then formed a bullish triangle/wedge continuation pattern, and Thursday has seen Tesla break out of this and prepare to test higher levels.
Tesla key statistics
|Market Cap||$702 billion|
|Enterprise Value||$753 billion|
|52 week high||$900.40|
|52 week low||$273|
|Average Wall Street Rating and Price Target||Hold, $711|
Tesla stock forecast
Now that the hard work has been done, it is up to Tesla stock to maintain the momentum and push on to the next big level at $780. Resistance based on the volume profile begins to thin out once we get above $740, meaning the move to $780 should begin to accelerate. Tesla remains above the 9-day moving average and the Relative Strength Index (RSI) and Commodity Channel Index (CCI) are all trending higher in line with price, confirming the move. There is a small resistance to get through at $726.94, which is the high from August 2 and the entry of the wedge/triangle.
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