On August 7, we noted, “Thanks to a massive market pullback, Tesla (TSLA) gapped from about $250 to a recent low of $192.67. Not only is it now at strong support, but it’s also over-extended on RSI, MACD and Williams’ %R. From its last traded price of $190.25, I’d like to see an initial gap refill at $209.”
Today, TSLA is back up to $222.72 after breaking through its 50-day moving average. From here, we’d like to see it initially refill its bearish gap at around $250 a share.
Helping, the European Commission just cut its planned tariff on imports of Tesla’s electric vehicles from China. In fact, as noted by MarketWatch.com, “The European Commission said it plans to grant an individual duty rate of 9% to Tesla as an exporter from China. Last month the Commission said that Tesla, along with several other EV manufacturers in China, would be subject to a 20.8% average duty.”
Two, remember, analysts at Morgan Stanley named TSLA a top pick in the auto sector. With an overweight rating and a price target of $310 on the stock, the firm noted TSLA may be “cornering the market on ZEV (zero-emission vehicle) credits and has seen increased contribution from recurring services revenue.”