Skip to main content

Tesla Rides Again (TSLA): New Highs Approaching

This post was originally published on September 14, 2017 in the Finance Trends Newsletter. Sign up to join our email list - you'll receive exclusive updates and market insights, plus the best of our website and social media content.

Tesla Inc. (TSLA) shares, which closed at $377.64 today, are trading just below their 52-week high.

A move above $387 would mark a new all-time high for the stock. That means no overhead price resistance, only the potential for blue skies above.


Here is a monthly chart (log scale, click to enlarge) that goes back to Tesla's IPO in 2010. It shows the stock's full trading history, including the breakout move from $40 to $290 in 2013 - 2014.


Tesla TSLA stock price chart monthly Elon Musk


The weekly chart below shows Tesla's recent breakout (from a long 3-year trading range) above $300 and the run up to its highs above $386.

If TSLA can hold these gains and advance an additional 4%, the stock will be trading at a new all-time high. $387 is the magic number here.


Tesla TSLA stock chart 2017 new highs breakout Elon Musk


Tesla CEO, Elon Musk sparked excitement this week with the announcement of a Tesla semi truck unveiling scheduled for late October. This marks Tesla's entry into the commercial transportation market. Production of the electric, long-haul semis will be underway "in about two years", according to Musk.

When I last posted on TSLA in late 2016, the stock was still stagnant and stuck in a rather wide trading range between $180 and $280.

At that time, the questions surrounding TSLA dealt with the Model 3 launch and mass acceptance of Tesla's products and corporate mission.

From our October 2016 update:

"...There is no doubt that Tesla Motors is an incredibly innovative and exciting company, and the Model 3 in question is a major product.
When the Model 3 is released to buyers in late 2017 and 2018, it will mark the full realization of Tesla's mission: to build and deliver an affordable electric car that will help kickstart mass adoption of electric vehicles (EVs)."

Last year, the market was still undecided about Tesla's future prospects, at least in terms of a Model 3 launch acting as a catalyst to new price highs.

However, by early 2017, Tesla shares were back above $250. In April 2017, TSLA crossed $300 and reached a $50 billion market cap, surpassing Ford (F), which has been in business since 1903 (and went public in 1956).

If TSLA can make a new high above $387, it will be a short hop to $400 and above. It should be noted that TSLA is prone to sell off in quick, sharp declines (see the plunge from $370 to $306 in July 2017) so your risk management safeguards must be in place, should you decide to buy the stock.

Tesla is among the top big-cap names in my watch list right now. I have been slowly building my exposure to US stocks in recent weeks and may add a starter position in TSLA to my portfolio sometime in the next week.

Note: Educational info is presented here, all stocks and securities mentioned are used as real-world (and real-time) case studies in trading. I offer no personalized investment advice. Readers must use their own due diligence and invest according to their unique needs and objectives.


Subscribe to the Finance Trends Newsletter - you'll get actionable trading ideas and valuable market insights sent to your inbox. You can follow our real-time updates on Twitter.  

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

William O'Neil Interview: How to Buy Winning Stocks

Investor's Business Daily founder and veteran stock trader, William O'Neil shared his trading methods and insights on buying winning stocks in an in-depth IBD radio interview.

Here are some highlights from William O'Neil's interview withIBD:

William O'Neil's interest in the stock market began when he started working as a young adult. 

"I say many times that I didn't get that much out of college. I didn't have much interest in the stock market until I graduated from college. When I got married, I had to look out into the future and get more serious. The investment world had some appeal and that's when I started studying it. I became a stock broker after I got out of the Air Force."
He moved to Los Angeles and started work in a stock broker's office with twenty other guys. When their phone leads from ads didn't pan out, O'Neil would take the leads and drive down to visit the prospective customers in person.

"I'd get in the c…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.