Bitcoin skyrocketed 5% after Tesla’s founder Elon Musk officially announced it will accept the cryptocurrencies as payment.
Tesla stock: at full speed ahead. Why?
We saw a huge surge of Tesla stock on April 13. It rebounded to its mid-March position. What were the reasons?
The first reason is a bullish forecast from the reliable US investment firm - Oppenheimer. After their analysis had been released traders ran to buy Tesla shares, thereby pushing the price up.
Technical analyst Ari Wald noted Tesla stock as a “Triple Play”, what basically means that the stock will beat not only expectations on revenue and earnings, but also on earnings guidance for future quarters. He said that as long as the stock holds above the $390 support level, the stock is "bullish." His colleague, fundamental analyst, Colin Rush kept an outperform rating for the stock. According to his forecasts, the price will be at $684 in 12 months.
Ramp in Giga Shanghai’s production
Another reason is an encouraging development in China, where auto sales are starting to the pick up again. Despite the shutdowns of plants because of COVID-19, the company's factory in Shanghai shows a massive expansion. According to a recent press release, Tesla has started producing two more Model 3 variants at its Shanghai plant. That means Tesla can have a lower price without import duties. This would boost the company’s profit margin.
Now we are waiting for Tesla’s first-quarter report on April 29. It would definitely affect Tesla’s stock.
Short technical analysis
Let’s look at the Tesla’s chart below. The price broke through all moving averages. Now it’s on the 651 mark, a bit above 50% Fibonacci retracement level. The resistant line is on 717. The support line is on 579.
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