Tesla Stock: 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

• Tesla stock is up nearly 10% this week.
• Morgan Stanley released a bullish report on Tesla, contributing to the stock’s positive momentum.

Chart Analysis

• Tesla stock is forming a cup pattern with a pivot of 299.29.
• The stock is currently 9% below that level.
• An earlier entry point could be seen if Tesla stock surpasses its Sept. 12 high of 278.39.

Consolidation Period

Tesla stock has been forming a new base since July after a 15-week consolidation period from February to June.

Risk Management

Investors should always manage risk and have a predefined exit plan.

• Typically, if a stock trades 7% to 8% below your entry price, it’s a good time to exit.

Comparison to Amazon

Morgan Stanley compared Tesla’s software and services to Amazon Web Services, highlighting the potential for growth.

Competition and Headwinds

Other automakers are rapidly introducing electric vehicles, which could impact Tesla’s market share.

• The EU’s European Commission launched a probe into whether vehicles made in China received production subsidies from the Chinese government, affecting Tesla and its competitors.

Anticipated Deals

Tesla plans to purchase $1.9 billion in auto parts from India and invest $15 billion in its Gigafactory in Nuevo Leon, Mexico.

Rankings

Tesla stock is ranked No. 2 in the automaker industry group and has a Composite Rating of 96.

Risk Management is Key

While Tesla stock has potential, it’s important for investors to have a risk management strategy and be willing to cut losses if necessary.

Conclusion

Tesla stock is setting up a new entry point as the automaker expands its artificial intelligence efforts. Investors should carefully consider the potential risks and rewards before making any investment decisions.

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