Tesla stock is down just 7.7% from the all-time high. Can it get there again?
Shares of Tesla (TSLA) – Get Tesla Inc Report are in focus on Monday and it’s not just because CEO Elon Musk took a near-10% stake in Twitter (TWTR) – Get Twitter, Inc. Report stock.
While that news item is carrying plenty of weight on the day, Tesla and Twitter have more than that in common. From a stock perspective, it really stands out that both stocks continue to gain strength throughout the session.
Tesla stock is now up about 5.5% on the day.
Just like investors could have “sold the news” and taken profits on the news of Musk’s stake in Twitter, they could have taken profits in Tesla after the automaker announced its first-quarter production and delivery results over the weekend.
The company delivered 310,048 new cars in the first quarter, a new record for the company. That was up more than 67% from last year, but only 0.5% higher than Tesla’s fourth-quarter delivery results.
Production of 305,407 vehicles was slightly below the fourth-quarter tally.
Surprisingly, the stock continues to gain ground on the day, even though the results came up short of analysts’ expectations, which stood near 313,000.
Trading Tesla Stock
Daily chart of Tesla stock.
Chart courtesy of TrendSpider.com
We have been all over Tesla lately, as the stock has been a leader on the rebound. At one point, shares ripped off 10 daily gains in 11 sessions. The one down day in that stretch was a loss of just 0.32% — no concern for the bulls.
Amid the surge, Tesla stock has now gained more than 50% off the March low.
Initially, shares paused at the 61.8% retracement, but after back-to-back inside days, the stock resolved higher with a big gap-up on March 28, climbing over 8% on news of a potential stock split.
Now pushing through the 78.6% retracement and downtrend resistance (blue line), Tesla stock continues to trade incredibly well. If it can hold up over $1,125, I believe it can continue higher.
Specifically, I’d be watching the 2022 high up at $1,208. Above that and the all-time high is in play up near $1,243.50.
As one of the leading growth stocks in the market, Tesla returning to all-time highs would be a big deal for investors. It could signal a return to demand for the Ark Innovation Fund (ARKK) – Get ARK Innovation ETF Report (as Tesla is its top holding), for bitcoin, and for growth stocks in general.
On the downside, I want to see the 10-day moving average hold on a pullback. Below that and there is a gap-fill level at $1,022.
