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Stock of Tesla Breaks Through 50-dma Resistance Into Bull Market Territory

September 12, 2023
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According to insights provided by analyst Dan Ives, in the event of a strike, companies such as GM, Ford, and Stellantis could face a further setback in their electric vehicle (EV) initiatives, potentially delaying their EV roadmaps until 2024. In a client communication, Ives stated, "However, if negotiations take place and some of these major proposals come through, the billions of incremental annual costs [for Tesla’s rivals] will be damaging and ultimately increase the prices of EVs rolling out over the next 12 to 18 months to consumers."

In recent months, Tesla's stock has demonstrated strong performance, with an 11.9% increase over the past three months and an impressive year-to-date surge of 122.1%. The stock concluded the trading session with a notable 10.1% surge, closing at $273.58, representing a remarkable 27.0% increase from its August 18th closing price.

This remarkable rally, the most substantial one-day gain for the stock since a previous 11.0% climb on January 27th, surpassed resistance levels at the 50-day moving average, which stood at $256.63.

Tesla's stock also benefited from a favorable development, as Morgan Stanley upgraded its outlook and set a Street-high target price of $400. Analyst Adam Jonas cited the company's potential in the field of artificial intelligence as a key driver for this optimistic valuation.

Furthermore, Ives highlighted a significant advantage for Tesla – its non-unionized workforce. This distinction means that Tesla would not be susceptible to the labor strike that could potentially affect rival automakers such as General Motors Co., Ford Motor Co., and Stellantis N.V. If such a strike were to occur, it could result in these automakers falling even further behind Tesla, potentially delaying their EV initiatives until 2024.

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Cathy Hills
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Eric Ng
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John Liu
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Bryan Curtis
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Adan Harris
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Cathy Hills
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