Tesla Motors Inc (NASDAQ:TSLA), the electronic car manufacturer has been in a huge uptrend over the last many months. The renewed focus on renewable sources of energy and the shift in demand for battery operated cars because of rising fuel costs has led Tesla Motors stock gaining tremendous momentum.
The company in a press release announced yesterday that it was choosing Nevada as the state to open its GigaFactory worth $5 billion. The company also said that it would be working very closely with the governor and the legislature of the state. Tesla Motors Inc by choosing Nevada over other states would be able to gain considerably as the state would provide them both corporate and personal tax exemptions at least for the initial period. Analysts also believe that once the factory is fully functional it would be able to cut costs and achieve operational efficiencies which would allow bringing the costs down for its final product and thus allow to compete with both international and domestic car manufacturers.
On the daily charts for Tesla Motors, the shares of the company have been in a huge uptrend. The price correction seen in yesterday’s trading session according to analysts was nothing more than a profit taking move and the company would continue to be in an uptrend in the near term. The momentum indicator for Tesla Motors Inc is in bullish territory and showing no signs of a reversal which is a huge positive. The relative strength index is currently in the overbought zone but showing no signs of a reversal. Analysts believe that every correction in the stock should be used as a buying opportunity.
Buy Tesla Motors Inc for a intermediate target at $310 with a stop loss at $265.