Can Tesla Keep Driving Higher?
Fiona Cincotta April 6, 2020 1:17 PM
Tesla’s share price jumped 5.6% on Friday and is set t open an additional 4.5% higher on the open today.
Tesla’s share price jumped 5.6% on Friday and is set to open an additional 4.5% higher on the open today.
Tesla reported that it delivered more vehicles in Q1 than expected, despite the coronavirus setbacks. Tesla delivered 88,400 cars in Q1 2020, beating Wall Street’s expectations of 79,908 units. Whilst Q1 saw a jump from Q1 2019 when jut 63,000 cars were delivered, the number was short of Q4 2019 when 112,00 when cars were delivered.
Today the mood music in the market is more upbeat after some signs over the weekend that the spread of coronavirus could be slowing, and containment measures might be working. Italy and Spain have both seen covid-19 cases fatalities fall. Germany and France are also seeing a flattening of the curve and the US has seen rates slow over the weekend, although its unclear how sustained that trend will be.
After the extended period in lock down owing to a natural disaster, there is a good chance that consumers will come out the other side with changed habits and visions. A more environmentally friendly approach could be one such adjustment. This would be favourable for Electric Vehicles such as Tesla.
Levels to watch
Tesla traded 5.6% higher on Friday and is set to extend gains by 4.6% on the open today, attempting to recoup 6.6% losses from across the previous week. The stock trades above its 200 sma on the daily chart. It looks set to test its 100sma, a move above here could see more bulls jump in.
Immediate resistance can be seen at 515.50 (yesterday’s high) prior to 528.50 (100 sma) and 560 (high 26th March)
On the flipside, support can be seen at 446 (low 2nd April) prior to 387 (200 sma) and 350.50 (low 17th March).
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.