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Tesla Stock Beats Wall Street as Model 3 Fever Is On

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Dec. 4 2020, Updated 10:52 a.m. ET

Tesla stock

In the fourth week of May 2017, Tesla stock (TSLA) rose 4.6% to $325.14. The company had a market cap of ~$53.4 billion on May 26. On April 10, Tesla became the most valuable auto company in the US, surpassing the market caps of General Motors (GM) and Ford Motor Company (F)

In 2Q17 so far, Tesla stock has risen ~16.8%, much higher than the 2.2% rise witnessed by the S&P 500 benchmark.

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Model 3 fever is on

According to Tesla’s 1Q17 shareholder letter, the initial production of its much-anticipated Model 3 is likely to begin in July 2017. To avoid delays in its Model 3 production, as seen in the Model S and Model X production, Tesla is interacting with parts suppliers to ensure timely delivery of the Model 3.

Model 3 is expected to deliver an all-electric range in excess of 215 miles per charge, and it should come equipped with hardware capable of fully anonymous driving. Model 3 has an MSRP starting at $35,000, excluding federal incentives in the US market. In this price range, no other all-electric car comes close to the Model 3’s features.

Investors’ high expectations of the Tesla Model 3 could be fueling its stock lately. In the last couple of quarters, Tesla has been able to improve its vehicle production rate and delivery figures, which are also boosting investors’ optimism.

Tesla’s technical analysis

On Tesla’s daily stock price chart, its 14-day RSI (relative strength index) is 60.0, showcasing its strengthening momentum. On the upside, an all-time high level near ~327.7 could act as an immediate resistance level this week. A breach of this level could attract renewed buying movement in Tesla stock.

Please read Automakers in 1Q17: A Comparative Analysis to learn about 1Q17 earnings of auto giants (XLY) such as GM, Ford, Fiat Chrysler (FCAU), and Tesla.

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