TSLA continues to rebound and finds long-term support at a key level

  • Tesla rebounds strongly on Thursday as markets decide to ignore Ukraine.
  • TSLA stock gained 4.8% on the general market rebound.
  • Shares rose more than 2% in pre-market Friday.

Shares of Tesla (TSLA) rebounded strongly on Thursday after plummeting off a cliff due to Russia’s invasion of Ukraine, Tesla is now charging higher in Friday’s pre-market. TSLA stock hit a low of $700 after opening just above it on Thursday, before spending the entire session climbing back to $800. The stock closed at $800.77, a surprising 4.8% above Wednesday. It’s now up 2% pre-market, nearly $820.

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Tesla Stock News: Odd Trades

The latest news is a family affair. Trades made by CEO Elon Musk and his brother Kimble, who sits on Tesla’s board, are being scrutinized by the Securities & Exchange Commission (SEC). The Wall Street Journal reports that Kimble sold $108 million worth of stock just a day before his brother Elon posted his infamous Twitter poll asking him if he should sell his 10% stake in Tesla. Once the survey received a positive response, Elon started selling. This caused the stock price to sell off by around 25% over the next month.

Daiwa Securities Group, Japan’s second-largest investment bank, gave the stock an outperformance rating because of what it says makes the company more attractive due to the Ukraine-Russia affair. The Japanese bank gave TSLA a price target of $900, writing that “rising oil prices and the potential scenario of fuel shortages, particularly in Europe, could accelerate the shift to electric vehicles. of production at the Berlin plant could be delayed, media reported recently. Tesla’s increasing capacity at its Shanghai plant gives it more flexibility to meet European demand.”

The bank also pointed out that the company was increasing production at its Shanghai plant to 1 million units per year and increasing production to 500,000 units at its Austin plant. Currently, the Shanghai plant can produce around 450,000 units per year. One reason Shanghai’s increased production is key is that gross profit margins there are around 40%, while the automaker’s original plant in Fremont, Calif. gross profit margins closer to 20%.

Finally, Tesla lost its chief engineering officer, Brian Dow, to Generac Holdings (GNRC), a maker of energy storage systems and batteries.

Tesla Stock Forecast: Ukraine Invasion Provides $700 As Support

One of the benefits of the roller coaster ride that hit markets on Thursday is that shareholders now know where the long-term support lies. Ahem, it’s $700. There must have been enough auto buying to drive the price up as the stock rose steadily to $765 by midday. The $700 mark is however in line with a lower descending trendline in place since November 10th..

The region around $945 is still the target to move back into bullish territory. This $945 mark has served as both support and resistance for the past four months since October. Before that, however, TSLA shares must close above the 200-day moving average, which is now at $832.61. It broke through this moving average on Tuesday and could signal that there is even more downside ahead.

TSLA 1-Day Chart

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Karen J. Nelson