Tesla has had a volatile year so far, with its stock down about 29% since January. Recent news has been mixed but shows potential for a rebound. Key points include:
Recent Performance: Tesla's stock has been fluctuating around $180, showing support at the 40-day moving average. Historically, Tesla tends to perform well in June, finishing higher eight out of ten times in the past decade with an average 12.1% return. This trend suggests a potential rise to around $197 if it follows past patterns (Stock Analysis) (Schaeffers Investment Research).
Analyst Opinions: Analysts have mixed views. RBC Capital Markets recently lowered its price target from $293 to $227, citing concerns about the robotaxi project. However, Wedbush Securities maintains a bullish outlook, predicting Tesla could again reach a $1 trillion market cap (Stock Analysis) (Schaeffers Investment Research).
Option Market and Max Pain: The options market shows significant bullish interest, with a high volume of call options compared to puts. This indicates that many traders are betting on the stock rising. The concept of "max pain" in options theory, which suggests the price where the most options expire worthless, can also influence the stock's movement, often leading it to gravitate towards that point as expiration approaches. Current trends suggest this could contribute to upward pressure on the stock price (Schaeffers Investment Research).
Upcoming Catalysts: Positive developments such as the approval of Elon Musk's compensation package and anticipation around Tesla's "Master Plan 4" could further boost investor sentiment. Additionally, the upcoming Robotaxi Day could reignite interest in Tesla's autonomous vehicle ambitions (Stock Analysis).
Given these factors, a reasonable prediction for Tesla's stock by the end of the week could see it in the range of $190-$200, assuming no major negative news disrupts the current trend.
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