Tesla stock drives above $1000 after Musk readies Semi truck production
The electric car maker’s share price soared above $1000 per share on Wednesday after its CEO Elon Musk confirmed that he plans to rev up ‘volume production’ of a Tesla Semi commercial truck.
Tesla stock soared above $1000 per share on Wednesday after its CEO Elon Musk confirmed that he plans to rev up ‘volume production’ of its Semi commercial truck.
The news helped bolster its stock price, pushing it to a new high and saw the carmaker claim the crown of largest auto manufacturer by market cap at $180 billion.
Tesla stock is up more than 7% on Wednesday after the news of the company’s aspirations to enter the commercial vehicle market with its own Semi truck were reported by Reuters.
The electric car maker received a bullish assessment from analysts at Wedbush Securities, who lifted their price target for the stock to $1000 and said that the company has ‘more room to run’.
The stock certainly has the potential to climb much higher over the remainder of the year, with investors excited about the company revealing its ‘million-mile’ battery technology which would deliver electric vehicles capable of lasting longer and driving further.
‘We believe with demand for Model 3's ramping stronger than expectations in China heading into summer timeframe, the lockdown easing in the US/Europe, and some potentially 'game changing' battery developments on the horizon (Battery Day likely in late June) that Tesla's stock likely has room to run further,’ Wedbush Securities managing director and analyst Dan Ives said in a note.
Tesla is trading at $1015 per share at the time of publication.
Tesla: technical analysis
As of today, Tesla’s market capitalisation is the largest in the sector surpassing previous titan Toyota. The firm’s rise has been impressive, shrugging off the crises of 2019 and sailing through the Covid-19 panic.
In chart terms, the push to a new record high marks a significant development, clearing the previous peak from February 2020 at $985 and briefly moving above $1000.
‘This leaves the stock price with no overhead resistance to target, and while short-term momentum may carry it higher, it is likely that a pullback will provide more attractive risk-reward for longs than the current level,’ Chris Beauchamp, chief market analyst at IG said.
‘Any pullback that holds above $690 will create a higher low, while in a bigger downward move, $688 and then $464 are near-term targets.’
‘The intraday chart shows a similar uptrend to the daily, but in the event of a drop the 200-hour SMA at $866 and nearby trendline support from the 1 May low may provide support, and create a higher low,’ Beauchamp added.
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