Can Tesla Stock Continue to Perform?
With shares of Tesla Motors (NASDAQ:TSLA) trading around $163, 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.
T = Trends for a Stock’s Movement
Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores, as well as over the Internet. Consumers and companies are looking to save at the pump, and what better way than with electric vehicles?
Just recently, Tesla Motors posted earnings and revenue figures that beat Wall Street’s expectations. The revenue beat is a positive sign to investors who seek high growth out of the company. Look for Tesla Motors to see increasing demand as consumers and companies opt for its vehicles over traditional ones.
T = Technicals on the Stock Chart Are Strong
Tesla Motors stock has been exploding higher over the past several months. The stock is now trading near all-time high prices and looks ready to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Tesla Motors is trading above its rising key averages, which signals neutral to bullish price action in the near term.