Recently, Tesla’s stock price has been soaring, and I wonder if anyone has noticed? In the past few days, TSLA has seen continuous strong gains, with intraday highs rising 4.3%, closing above the $360 mark, igniting market discussions. Interestingly, analyst Dan Nathan, who has often been bearish on Tesla, has suddenly changed his tune and turned bullish on Tesla. What happened?
In short, there are two main reasons why people are optimistic about Tesla. The first is the technical momentum, and the second is the overall shift in market sentiment!
Starting with the technical analysis, Tesla’s stock price has continuously hit new highs and lows over the past several weeks, firmly standing above the 200-day moving average. This trend is a strong buy signal for technical investors, no wonder even the past ‘General of the Bears’ can’t resist jumping on board.
Next is the market sentiment. Over the past few months, there have been doubts about whether the electric vehicle (EV) boom has ended. However, after Tesla announced its latest quarterly delivery data prediction, market expectations became more conservative. Many analysts believe that Wall Street has underestimated Tesla’s performance this quarter, as the $7,500 federal tax credit for electric vehicles in the U.S. is about to end this month, leading many buyers to make early purchases, which has created a scarcity of both new and used Tesla vehicles.
Moreover, there’s exciting news! Tesla’s Robotaxi plan recently obtained a testing license in Nevada, which has the market buzzing, as it feels like a new business is on the brink of emerging, and the future looks promising.
For Elon Musk, this is just the beginning. The board of directors has officially proposed a ‘2025 CEO Performance Incentive Plan.’ If Musk can increase Tesla’s market value from the current $1.1 trillion to $8.5 trillion, he will become the world’s first ‘trillionaire,’ and Tesla will become the highest-valued company in history.
In summary, with stable technical trends, a series of favorable news, a surge in short-term demand due to EV tax advantages, and the Robotaxi prospects, combined with Musk’s grand plans for the long-term, it’s no wonder the market attitude has turned 180 degrees. Tesla is definitely something to watch—bull market is on the run, waiting for the next explosion!