Tesla Stock Sets Up New Entry Point as AI Efforts Expand
Introduction
Tesla (TSLA) stock is setting up a new entry point as the automaker expands its artificial intelligence efforts. What does a potential TSLA investor need to know?
Positive Momentum for Tesla Stock
- Tesla stock looks poised to move higher as the Elon Musk-led firm is up nearly 10% this week.
- Shares of the automaker are forming a cup pattern with a pivot of 299.29.
- An earlier entry for aggressive traders could be seen if Tesla stock takes out its Sept. 12 high of 278.39.
- This new base comes after a 15-week consolidation period of Tesla shares that lasted from February to June.
Tesla Stock: An ‘Amazon’ Moment?
The electric-vehicle company saw its shares pop earlier this week after Morgan Stanley upgraded Tesla stock to overweight from equal weight with a price target of 400.
Tesla’s fundamentals remain intact despite heightened competition dragging on shares.
Automakers ranging from incumbents like Mercedes-Benz and Volkswagen to new entrants like Lucid and Nio have been rapidly introducing electric vehicles in markets worldwide.
Tesla and its China-based electric-vehicle competition face potential headwinds as the EU’s European Commission launched a probe into whether vehicles made in China received production subsidies from the Chinese government.
Anticipated Deals Drive Optimism
Tesla’s plan to purchase $1.9 billion in auto parts from India was announced, along with a Mexico state governor stating Tesla would invest $15 billion across two years on its Gigafactory in Nuevo Leon.
Tesla CEO Elon Musk also continues to make headlines with his new biography released this week.
Conclusion
Tesla stock is ranked No. 2 in the automaker industry group and has a Composite Rating of 96.
Still, the final call on trading Tesla rests on an investor’s risk management.
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