Tesla (NASDAQ: TSLA) stock has made an impressive comeback, erasing over 50% of its year-to-date losses. The surge in Tesla’s stock price has been driven by Q2 delivery numbers that exceeded analysts’ expectations.
After a significant pullback of around 14% on July 11, Tesla’s stock rebounded, marking its first major correction since the rally began in late June. Currently, Tesla’s stock is trading at $255.89.
Recent performance and influencing factors
The electric vehicle (EV) maker’s stock has soared, with a 2% increase in the last 24 hours and 36% in the past month. The recent boost in Tesla’s stock coincides with CEO Elon Musk’sannouncement of a delay in the highly anticipated robotaxi event, originally scheduled for August 8.
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Musk cited the need for significant design changes and additional features, with a new date yet to be determined.
In a separate development, Musk is reportedly planning to pledge around $45 million monthly to America PAC, a super PAC supporting former President Donald Trump’s presidential campaign, according to Reuters.
This political move by Musk could impact Tesla’s stock price as investors assess the implications of his support for Trump’s campaign.
Investors are eagerly awaiting Tesla’s second-quarter earnings report on July 23, which could provide further insights into the company’s performance and future plans.
Analysts are divided on Tesla’s stock price targets, with some predicting that Tesla could reach $360 if the company maintains its positive trajectory and successfully implements these new strategies.
Technical analysis of Tesla stock
In the current context, trading expert Tradingshot has highlighted a critical technical breakdown on the daily timeframe. This correction, combined with the emergence of a Golden Cross on the 1D timeframe, aligns with Tesla’s historical patterns and offers insights into its potential growth trajectory.
Tesla’s recent pattern has formed an Inverse Head and Shoulders (IH&S), a bottom reversal formation that has historically preceded significant price increases.
Tesla stock price analysis chart. Source: TradingView
Similar IH&S patterns were observed in 2019/20, 2016/17, and 2012/13, each followed by corrections of around 10% to 15% before embarking on parabolic rallies.
The recent 14% correction aligns with these historical trends. The sharp recovery to the 0.5 Fibonacci retracement level, cutting losses by 50% last week, seems to confirm this growth pattern.
In all previous cases, Tesla’s stock price reached or significantly surpassed the 1.5 Fibonacci extension measured from the IH&S pattern’s bottom (the Head).
Notably, in 2019/20, it took about 1.5 months to reach the 1.5 Fibonacci extension, while in 2012/13, it took roughly 2 months.
Based on these historical patterns and the current recovery, it is reasonable to anticipate that Tesla could hit the $360 target within the next two months.
This projection is grounded in the consistency of Tesla’s stock behavior following similar technical patterns, suggesting a strong potential for continued upward momentum.
Adding to the positive outlook, analysts from Global Equities Research raised Tesla’s price target from $340 to $400 due to a surge in demand for the Model 3 and Model Y vehicles, according to sources.
Additionally, Wedbush analyst Dan Ives increased the price target on Tesla stock from $275 to $300 for the next 12 months.
In conclusion, Tesla’s recent performance, combined with strong technical indicators and historical patterns, suggests a strong potential for the stock to reach $360 within the next two months.
The company’s robust Q2 delivery numbers, strategic delays in key projects, and increasing demand for its vehicles all contribute to this optimistic outlook.
Investors should closely monitor the upcoming earnings report on July 23 for further insights into Tesla’s performance and future plans. If the company maintains its positive trajectory and successfully implements its new strategies, reaching the $360 target appears highly feasible.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
