Tesla Shares Show Strong Upside Momentum After Hitting Record Highs

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Tesla Shares Show Strong Upside Momentum - Aug 13, 2014

Tesla Shares Show Strong Upside Momentum - Aug 13, 2014

After the pullback in Tesla shares mid-July this year, price has bounced off support and shown a strong run towards its previous highs. In fact, Tesla shares have gapped up over the weekend as risk sentiment picked up.

With MACD and RSI both reflecting a return of buying momentum, Tesla shares could make its way up to the $270/share region and even until the $300/share major psychological barrier. The SMAs have been moving higher as well, indicating that this stock could be in for more gains in the coming days.

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Tesla Shares Predictions

Earlier in the week, Tesla shares hit record highs despite negative reviews for its Model S car. This is also despite weak earnings reports from the company and nearly a year’s worth of losses. After all, analysts have calculated that the company could churn out $2 billion a year in revenue if its car sales pick up in the next few years.

As it is, Tesla shares are up by 70% so far this year on this optimistic forecast. Stock watchers have also remarked that the company’s lithium-ion battery production could have many more applications, opening up more revenue sources for Tesla and potentially stronger gains for its shares.

Investment banks are upgrading their forecasts for Tesla shares, with many pegging it at $300/share before the end of the year. According to Deutsche Bank’s Rod Lache, “At this point, we see an increasingly clear path to 500,000 units of annual production by late this decade. And we don’t expect growth to end there, as Tesla is already contemplating opportunities for additional production capacity.”

Dougherty analysts have the highest price target on Wall Street for Tesla, at $325. The lowest price estimate for Tesla shares is from Thomson Reuters research is $75 while JPMorgan Chase has a target of $170 on the stock.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com