With markets rallying, investors may want to consider beaten down heavyweight stocks, like Tesla (TSLA) again. After diving from about $310 to $210, it looks like the bottom may be in for the EV stock. RSI, MACD, and Williams’ %R are all oversold, as well. And, from a current price of $219.35, we’d like to see the stock refill its bearish gap around $270 initially.
For one, this is Tesla. It’s simply down on a temporary rough patch.
Two, President Biden is pushing for 50% of all new car sales to be electric by 2030. Three, EV sales are only growing. In fact, according to the International Energy Agency (EIA), as noted by CNBC, “Electric vehicle sales are on course to hit an all-time high this year.” In fact, the EIA added that 2022 was “expected to see another all-time high for electric vehicle sales, lifting them to 13% of total light duty vehicle sales globally.”
TSLA is up 4.34% in pre-market to $228.85.
If this latest market rally is sustainable, TSLA could race back to higher highs.