Tesla Motors Inc (NASDAQ:TSLA) has been one of the best performing stock in the automobile sector during last year. The stock has been in a strong uptrend over the last few weeks even after certain investment banks, like Morgan Stanley, downgraded the stock. Tesla Motors had recently signed a MOU with the state of Nevada to start a factory which it believes would be able to help shore up costs and make automobile manufacturer competitive against most of the competitors.
Many analysts believe that the company should be looked upon by investors as a buy on dips as the company continues to have a strong long term growth outlook. The Electronic Vehicle market according to many analysts is blossoming at a better rate than expected. The company also reported a strong set of quarterly results in the quarter gone by which has made analysts and investors even more positive for the stock going forward.
On the daily charts for Tesla Motors, we see the stock in a very strong uptrend and even though the stock saw some profit taking post the Morgan Stanley downgrade, the stock continues to be in a strong uptrend as it currently trades way above all the important daily moving averages. The first level of support for Tesla Motors comes at around $248 which is also the 50 day moving average for the stock. The momentum indicators for the stock have given a fresh sell signal for the stock but the price action seen in yesterdays’ trading session is indicative of the strong buying demand for the stock. The relative strength index for Tesla Motors Inc on the other hand has given a reversal indicative of the strong buying support.
Long Tesla Motors Inc (NASDAQ:TSLA) at current levels for a short term target at $290 with a stop loss below $248