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These Factors Drove Tesla Stock Higher Last Week

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Tesla stock inched up

So far in this series, we have covered key updates for mainstream auto stocks (IYK) Fiat Chrysler (FCAU), Ford Motor (F), and General Motors (GM). In this part, we’ll look at electric carmaker Tesla’s (TSLA) recent Wall Street performance. Last week, Tesla stock turned positive and ended the week with an impressive gain of ~10.6%. In the previous week, the stock fell ~3.4%.

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Key support and resistance levels

The stock posted an all-time high near $386.99 in June 2017, which should act as a key resistance level. Last Friday, Tesla settled at $379.81, not far from its all-time high. A breach of its $386.99 resistance level should attract fresh buying.

Also, its sequence of higher highs and higher lows has persisted, reflecting a strong uptrend. Its 14-day RSI (relative strength index) score is hovering near 65.9, confirming positivity in its underlying momentum.

Recent key drivers

On September 14, Tesla cofounder and CEO Elon Musk revealed that October 26 is the tentative date for the release of Tesla’s upcoming semi truck. On September 12, the NTSB (National Transportation Safety Board) published a press release pertaining to the investigation of a Tesla driver’s fatal crash on May 7, 2016. According to the NTSB report, the “truck driver’s failure to yield the right of way and a car driver’s inattention due to overreliance on vehicle automation” could be the reasons for the fatal crash.

The report findings also suggested that Tesla’s Autopilot feature was not was “not designed to, and could not” respond to that driving condition. The report also highlighted that, after this crash, Tesla “reduced the period of time before the ‘Autopilot’ system issues a warning/alert when the driver’s hands are off the steering wheel.”

Tesla is expected to start delivering its much-awaited Model 3 to non-employee customers in 4Q17. The company’s ability to improve its delivery and production rate could remain in focus in the third quarter. Any positive development on Model 3 production could keep investors’ optimism alive. Continue to the next part, where we’ll explore how Ferrari stock traded last week.

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