Tesla set new record
What are the reasons for its rally?
Fundamentals
Tesla skyrocketed to $1 835 on Monday. Recently the company has announced a 5-for-1 split. It will make the stock more accessible to a broader base of investors. Each Tesla shareholder will receive four additional shares for every share held. Trading will start on a split-adjusted basis on August 31.
Actually, the stock’s rise might be caused by the positive call from Wedbush. He said that Tesla has a capacity to grow further because of the increasing Chinese demand for electric cars. A new Tesla’s factory opened in Shanghai last year. Elsewhere, he mentioned that Elon Musk may unveil some surprising news on September 22 on Battery Day. In addition, Bank of America and Morgan Stanley raised their rating of Tesla. They expect the tech giant will present some advanced battery technologies, which will allow to decrease its costs. After the price’s surge Elon Musk got a prestigious title of the fifth-richest person in the whole world. Notably, he owns 21% of Tesla but has pledged almost 50% of his stake for loans.
Technical tips
According to Wedbush, the stock price may surge to $1 900 soon. Indeed, the current risk-on sentiment may help the stock to reach this level. However, if Tesla drops below the low of August 14 at $1 645, it will open doors towards the next support at $1 500. Catch the market movement and join the flow!
