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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.

Wedbush thinks Tesla has 'more room to run'

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.

How much does it cost to buy US shares with IG?

There are three ways to ‘buy’ US shares with IG: spread betting, trading CFDs or buying physical shares. How much it costs will depend on which method you choose. The table below illustrates how the costs to get exposure to $12,750 of Tesla stock, which is equivalent to 17 shares (quoted at $750 a share, at a GBP/USD rate of 1.305).

Remember, spread bets and CFDs are derivatives, which come with higher risk and reward than investing.

Cost to get exposure to Tesla stock

Spread betting CFD trading Share dealing
Action Buy $0.13 per point Buy 17 share CFDs Buy 17 shares
Capital required to open $2000 $2550 $12,750
Total fees $2.16 $24.24 $97.70

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Note: The above is accurate as of 10 March 2020, and amounts do not include overnight funding charges and taxes.

Spread bets are not subject to tax. CFDs are free from stamp duty, but subject to capital gains tax. Share dealing is subject to both stamp duty and capital gains tax.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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