Can Tesla Break Out?

With shares of Tesla (NASDAQ:TSLA) trading around $39, is TSLA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for a Stock’s Movement

Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. With the rise of the green vehicle movement, Tesla participates in an area that is poised to see increasing demand. Not to mention, the vehicles that the company is outputting are aesthetically pleasing. Look for the company to continue to take market share in a new automobile industry.

T = Technicals on the Stock Chart are Strong

Tesla has made significant gains since its initial public offering in 2010. The stock is trading just about at all-time highs, but must break above the critical $40 per share zone. Tesla is seeing higher highs and higher lows, as a great uptrending stock should. The stock is currently building up steam as it is consolidating in the top end of a recent range. If momentum begins to pick-up, it is poised to move past the previous highs of $40 per share.