To The Moon

The electric-vehicle maker is hiking the price for all of its Model Y vehicle trims in the U.S. by $1,000 beginning April 1. To confirm it’s not a joke, Tesla announced on Saturday that that it would increase the prices of Model Y by $2,177 in multiple European countries by March 22.

⚠️ Trading tips: Need to break 177 for calls, otherwise looking elsewhere.

Cup & handle or a fake breakout?

CEO Elon Musk explained the move as a seasonal one, saying that consumer demand is seasonal, though manufacturing needs to be steady throughout the year. Car-buying tends to pick up in the spring in the U.S. as Americans receive their tax refunds.

--On pace for largest percent increase since Feb. 15, 2024, when it rose 6.22%

--Currently up two consecutive days; up 6.77% over this period

--Best two day stretch since the two days ending Feb. 15, 2024, when it rose 8.93%

--Down 14.06% month-to-date

--Down 30.17% year-to-date

--Down 57.68% from its all-time closing high of $409.97 on Nov. 4, 2021

--Down 5.32% from 52 weeks ago (March 20, 2023), when it closed at $183.25

--Down 40.85% from its 52-week closing high of $293.34 on July 18, 2023

--Up 12.85% from its 52-week closing low of $153.75 on April 26, 2023

--Traded as high as $174.72

--Up 6.82% at today's intraday high; largest intraday percent increase since Sept. 11, 2023, when it rose as much
as 10.6%

--Best performer in the S&P 500 today

--Most active stock in the S&P 500 today

--Best performer in the Nasdaq 100 today

--Most active stock in the Nasdaq 100 today

Pump it up for earnings dump?

Goldman Sachs, for example, lowered its price target on the stock after channel checks showed Q1 deliveries tracking lower than previously expected, at just 435,000. Deutsche Bank also said the move was designed to boost first-quarter sales.

With the first quarter ending in just two weeks, Tesla appears to be heading for a delivery miss. Wall Street consensus currently still has Q1 deliveries of 487,000 units, according to FactSet. However, many analysts have cut predictions in recent days.

Nonetheless, the price increase should help lift profit margins in the second quarter, which have been falling over the last several quarters.

With the stock still down sharply this year, the news also gives Tesla bulls a reason to be optimistic, though the company is still sensitive to overall demand trends in electric vehicle stocks.

Tesla is expected to report Q1 deliveries in early April.

Taking futures to the next level

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