Tesla shares gapped higher and showed increased upside momentum after the company’s Q2 sales report was released. The stock is trading around $280/share at the moment and may be poised to break the previous highs on stronger data.
However, stochastic is already moving down from the overbought zone, suggesting that the rallies are already overdone. RSI has also reached the overbought region but hasn’t quite crossed down yet, which means that the stock could still head further north.
Meanwhile, the 100 SMA is starting to cross above the longer-term 200 SMA, confirming that further gains are likely. Should this crossover fail to materialize, Tesla shares could still consolidate near the recent highs before gaining enough momentum for an upside break. A return in selling pressure might lead to a selloff to the nearby support at $260/share.
Tesla Shares Outlook
According to the company’s latest sales report, deliveries of the Tesla Model S car drove sales up by 52% for the quarter, suggesting positive momentum ahead of the Model X launch. Tesla sold 11,507 Model S sedans for the three months that ended June 30, a company record. The global sales results were better than the 10,000 to 11,000 forecast the company had given during its Q1 earnings release.
This suggests positive revenues for the company’s Q2 earnings report, which would mark a strong recovery from the $154 million in losses for the first quarter. Analysts are seeing substantial upside for Tesla shares if the report surprises to the upside as well.
In addition, these also suggest that Tesla shares are able to recover after the oil price slump, which managed to hurt sales of electronic cars in the first few months of the year. The average Tesla sells for around $100,000 based on the company’s financial reports, which suggests an additional $50 million to $100 million in revenues.
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