After yesterday's stock price rally, investors today continue to buy Tesla (TSLA.US) shares, which were further supported by Elon Musk's comments. The company's stock is gaining almost 7% today and is known for its price sensitivity to comments from its founder and major shareholder, Elon Musk. What's more, Musk's comments came at the 'right' time, after the company reported slightly higher-than-expected vehicle deliveries in the second quarter of the year. As a result, the stock is on track today to erase completely the declines it has recorded since January 1, 2024.
- Musk, however, does not seem to be referring directly to car sales and, commenting on the stock price rally, looked to the distant future. He conveyed that Tesla in the future will prove to be a leading developer of Optimus humanoid robots and a supplier of 'Robotaxi' autonomous cars. As a result, he pointed out - all those playing against Tesla in the long term are 'doomed to fail'.
- For Tesla, the most important issue remains the effectiveness of this potential expansion of its business into the robotaxi and automated robot segments. Musk's far-reaching plans for the company's future lay the groundwork for potentially high valuations for the company, due to the innovative nature of the changes being made, as well as Tesla's freedom from potential fluctuations in the EV segment. In his narrative, Elon Musk clearly equates Tesla to technology companies rather than auto manufacturers.
- At the same time, a potential bearish signal for stocks in the short term could be the news of the sale of a stake in Tesla by Nancy Pelosi, whose investment decisions remain among the most watched among members of Congress. The estimated value of the deal is between $250,000 and $500,000.
Tesla's shares have rallied nearly 75% from local lows in April 2024. The company will report quarterly financial results for Q2 2024, July 23. A conference call is scheduled for August 8, where the company will unveil a 'Robotaxi' vehicle. After Musk comments, Investors may expect future, additional and potentially meaningful cash flows from Optimus and Robotaxi business lines, however as for now, the company does not sell either of that products.
Tesla (D1 interval charts)
Tesla has broken out of the upper limits of the downtrend, initiated in July of the previous year, after this week's dynamic increases. The company's stock price is approaching local highs from December 2023, at $264 per share. Source: xStation5
As we can see above, RSI signals overbought conditions at 84 level and previous price reactions may signal a local peaks. However, Tesla is now one of the best US Big Tech performer and may attract investors, focusing on product updates and Elon Musk comments, as well as the company events. Also, on the chart, we can see a reversed 'head and shoulders' price pattern. Source: xStation5
Source: XTB Research, Bloomberg Finance L.P.
