- Nasdaq:TSLA outperforms on a red day for equities.
- Tesla falls 1.74% but the Nasdaq drops nearly 3%.
- Tesla is still bullish but the overall tone is a big headwind.
Tesla managed to put in a strong performance on Tuesday. That is not a typo, the stock actually outperformed its benchmark index by 1%. Usually, Tesla is more volatile than the broad market so tends to run hot when markets are flying and run heavy when things turn. But Tuesday was an outlier.
Now let's not get too excited here, Tesla (TSLA) still left us questioning whether it can break $800, which was looking likely on Monday after such a strong move, following on from Friday.
We would really have liked Tesla to hold above the $780 resistance that it finally managed to take out on Monday. However, it was not to be and TSLA stock actually dropped to a low of $766.18 during the session. This is the 9-day moving average, so Tesla did manage to hold here at least.
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TSLA 15-minute chart
As we can see from the 15-minute chart above, Tesla did rally a bit into the close. Whether this was to do with some savvy technical short-term traders buying the dip to the 9-day moving average or was to do with a Market On Close (MOC) order is not clear, but at least it kept things looking a bit better from a chart perspective.
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
Tuesday's sell-off has made our call slightly less clear. Tuesday we said bullish above $780, as this was the key resistance and TSLA had finally surged through it on Monday. This pullback was not what the chart needed, especially as this was a reversal candle, the low on Tuesday's candle was below the previous candle but the high was also lower.
Having said that, Tesla did hold the 9-day moving average and is still in a longer-term uptrend we can clearly see from the chart below. So we will remain in the bullish camp – for now – due to the stock actually outperforming the Nasdaq on Tuesday and the 9-day holding. Tesla should break Monday's high at $799 to confirm this, though. Otherwise, it is back to a neutral view. $800 is obviously a psychological round number target. Below, there is some decent support around the $730 to $740 zone.
FXStreet View: Bullish, neutral below $765.
TSLA daily chart
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