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Tesla (TSLA) Shows Strong Momentum and Bullish Outlook Amid Positive News and Analyst Upgrades

StockInvest.us, 2 months ago

Tesla Technical Analysis

Tesla, Inc. (TSLA) demonstrated substantial momentum in its latest trading session on September 11, 2023, with a significant jump of 10.09%, resulting in an increase of $25.08, ending the day at $273.58. The trading volume was high, closing at 173.17 million shares, surpassed the average volume of 125.58 million shares, suggesting a substantial bullish interest in the stock.

The Relative Strength Index (RSI) stands at 71, which is generally considered overbought and may indicate a potential slight pullback, Yet, considering the exceptional news flow, this might not be the case. The Moving Average Convergence Divergence (MACD) at -2.48 might indicate a bearish trend, but as the stock has significantly outpaced the 50-Day Moving Average (256.33) and 200-Day Moving Average (199.93), the overall trend seems to be bullish.

The stock reached a high of $274.85, slightly above the resistance point at $274.45, hinting the substance to push further. However, it is also important to keep an eye on the stop-loss marker, which stands at $263.79.

Fundamental Analysis

With a market capitalization of $868.34 billion, Tesla continues to defend its role as a key player in the electric vehicle market. Its strong position is affirmed by a robust Earnings Per Share (EPS) of $3.5 and a comparatively high Price to Earnings (PE) ratio of 78.17, which reflects high investor expectations.

The notable news further strengthens the fundamental analysis. Morgan Stanley gave a bullish upgrade to Tesla's stock, projecting a price target of $400, clearly indicating an optimistic future. This is coupled with the announcement of a $15 billion investment in a new factory in Mexico by Tesla and its suppliers, and Tesla’s launch of its custom supercomputer, Dojo.

Tesla The discounted cash flow (DCF) is $279.96, which is close to the current price, but still indicates a slight undervaluation. The median target price given by analysts is $280, a minor boost from the current price. Most importantly, the stock has a "Buy" consensus from analysts, further reinforcing the optimistic outlook for Tesla.

Future Stock Price Prediction

Based on recent performance, coupled with positive news and analyst upgrades, TSLA can be expected to maintain its bullish momentum into the next trading day, September 12, 2023, and throughout the week.

While the RSI indicates the stock might be in the overbought territory, the significant news seems to overpower the brief technical signals. The stock could inch closer to or surpass the DCF and median target price of around $280 in the short-term unless any negative news hits the market.

Final Evaluation

Considering the strong technical and fundamental signals backed by a wave of positive news, TSLA appears to be a strong "Buy". The recent upgrade from Morgan Stanley, significant investments in infrastructure, and advancements in technology like the Dojo supercomputer all contribute to a potentially bullish trajectory for the stock.

The investors are advised to keep an eye on upcoming events, especially Tesla’s earnings announcement scheduled for October 17, 2023. The financial performance disclosed on this day could further influence TSLA's stock trajectory.

Check full Tesla forecast and analysis here.