14-day Premium Trial Subscription Try For FreeTry Free

Tesla (TSLA) Shows Bullish Momentum Amid Analyst Upgrades and Vehicle Delivery Optimism

StockInvest.us, 2 weeks ago

Tesla Technical Analysis

Tesla, Inc. (TSLA) closed at $254.27 on September 24, 2024, reflecting a positive momentum with a daily change of 1.71%. The current RSI of 69 suggests that TSLA is nearing overbought territory, indicating potential pullback risk. The stock is trading above its 50-day ($222.01) and 200-day ($202.33) moving averages, which typically indicates a bullish trend.

Key support levels are identified at $241.03, while resistance is noted at $256.56. With the recent close near the upper end of this range, a breakout above $256.56 could trigger further upward momentum. The Average True Range (ATR) of 4.15 indicates moderate volatility, suggesting that price swings around the average can be expected.

The MACD shows a positive divergence, supporting the bullish case for near-term performance. However, caution is advised due to the elevated RSI, evoking consideration for potential profit-taking or price corrections.

Fundamental Analysis

Tesla's market cap stands at approximately $812.30 billion, underpinned by an EPS of $3.55 and a relatively high P/E ratio of 71.63, suggesting the stock is priced with high growth expectations. The projected DCF of $74.06 highlights significant undervaluation, especially considering the target consensus price of $247.84 and median price of $230, which indicates room for upward adjustment but also reflects cautious sentiment amidst macroeconomic conditions and competition.

Recent news highlighted a series of analysts upgrading vehicle delivery estimates to around 470,000 for the third quarter—a positive sign that could bolster investor confidence ahead of the earnings announcement on October 16, 2024. The focus on upcoming catalysts, such as the anticipated robotaxi event, provides further potential for price appreciation.

Tesla Short-Term Predictions

For the next trading day (September 25, 2024), TSLA is expected to maintain its upward trajectory, particularly if it successfully breaks above the resistance level at $256.56. Given the bullish expectations surrounding vehicle deliveries and general market enthusiasm, the stock may push towards the high end of its range, yet risk of pullback remains due to overbought conditions.

Over the upcoming week, TSLA's performance will likely hinge on pre-announcement sentiment around deliveries and broader market trends. Any positive news could drive the stock closer to its year high of $271, while negative shifts in broader economic indicators may prompt testing of support levels.

Intrinsic Value and Long-Term Potential

With a DCF valuation indicating substantial undervaluation, Tesla presents an attractive long-term investment proposition. The company leads in innovation within the electric vehicle space, supported by a robust product pipeline. If Tesla continues to execute on its delivery and production goals, along with innovations in autonomous driving, the stock could significantly appreciate over the long term.

However, investors should be aware of potential market corrections driven by macroeconomic factors, regulatory challenges, or increasing competition in the EV space that could temporarily hinder performance.

Overall Evaluation

Taking into account both technical and fundamental insights, Tesla, Inc. (TSLA) is categorized as a 'Buy' candidate. The strong bullish sentiment reflected by analyst upgrades, coupled with improving vehicle delivery expectations and intrinsic valuation metrics, suggests a favorable outlook for the stock. Despite short-term volatility risks, the long-term investment potential remains positive, supporting this upward classification.

Check full Tesla forecast and analysis here.