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Tesla Gains After Clearing Critical Technical Level
Tesla (TSLA) surged on Thursday, climbing 6% to close at $368.81 and signaling a traditional breakout above a key consolidation buy point. According to MarketSurge charts, TSLA shares moved decisively past the 367.71 level, a threshold that had been acting as resistance during recent trading sessions. This price action could be interpreted as a bullish signal for traders watching for momentum in the electric vehicle (EV) giant.
Tesla Clears Crucial Resistance Levels
Before Thursday’s session, Tesla stock had been consolidating in the range of 357-358, which acted as a significant resistance zone. Breaking through this barrier allowed the stock to gain momentum, pushing it higher into the close. Earlier on Thursday, Tesla was added to IBD SwingTrader with a price of entry at 358.38, marking it as a noteworthy buy point for swing traders looking for strong setups.
Heading into Friday’s market open, Tesla shares were inching closer to the $370 mark, reinforcing the idea of continued upside momentum. While Tesla’s stock had experienced multiple aggressive entry signals over the past several months, many of those attempts were followed by quick pullbacks amid a sideways trading environment. However, the recent price strength has been more sustained.
Since the end of July, Tesla’s stock has climbed approximately 20%, with gains of around 10.5% in September alone. Last week, shares rose 5%, closing at $350.84. Despite this upward trajectory, the stock’s relative strength line remains below previous consolidation highs and 52-week peaks but has maintained an upward trend over the last two months, suggesting strengthening momentum.
New Product Launch: Megablock
On Monday, Tesla unveiled its latest innovation in industrial energy storage: the Megablock. This new product integrates the next-generation Megapack and boasts a 23% faster installation time coupled with roughly 40% lower construction costs compared to previous models.
CEO Elon Musk also revealed via X (formerly Twitter) that Tesla has started producing its own transformers, a move that could further streamline energy storage production and reduce supply chain dependencies. Musk continues to highlight the broader vision of Tesla’s technology, including the potential impact of its Optimus humanoid robot, underscoring the company’s efforts to diversify and innovate beyond electric vehicles.
Upcoming Deliveries and Earnings Outlook
Tesla is scheduled to report its third-quarter global vehicle deliveries in early October, with earnings expected on October 21. According to analyst consensus compiled by FactSet, global deliveries for Q3 are projected to reach approximately 432,000 units. This would represent a roughly 13% increase compared to the second quarter but still fall more than 6% short of Q3 2024 figures.
It is worth noting that few analysts have updated their Q3 delivery forecasts since late July, which leaves some uncertainty around final numbers. However, Tesla’s deliveries are expected to remain strong for the third quarter, driven in part by the impending expiration of the U.S. electric vehicle tax credit on September 30. After this date, delivery volumes in the U.S. may face headwinds, with a likely significant decline anticipated.
Market Implications and Outlook
Tesla’s breakout above key resistance levels and the strong price momentum suggest growing investor confidence. The combination of innovative product launches, such as the Megablock, and the anticipation around quarterly deliveries and earnings contribute to a dynamic outlook for the stock.
While the relative strength index (RSI) and other technical indicators show that Tesla has room to run, it remains important for market participants to monitor supply chain developments, regulatory changes, and competitive pressures in the EV space.
This article is for informational purposes only and does not constitute investment advice. Investors and traders should conduct their own research before making any financial decisions.
