Tesla (TSLA)

by | Dec 1, 2022 | Daily Trade Alerts

Other traders may be scared of Tesla (TSLA) at the moment, but it looks like an attractive bet on excessive fear. Technically, it’s wildly oversold at prices now seen since early 2021. It’s also over-extended on RSI, MACD, and on Money Flow. From a current price of $194.70, we’d like to see it run back to $300 in the first half of the new year.

Governments all over the world want millions of EVs on the roads over the next decade. President Biden wants 50% of all new car sales to be EV by 2030. Also, according to Barron’s, new purchase tax credits will cut the cost of buying an EV for many Americans in 2023.

Also, according to the IEA: “Few areas in the world of clean energy are as dynamic as the electric car market. Sales of electric vehicles (EVs) doubled in 2021 from the previous year to a new record of 6.6 million. Back in 2012, just 120 000 electric cars were sold worldwide. In 2021, more than that many are sold each week. Nearly 10% of global car sales were electric in 2021, four times the market share in 2019. This brought the total number of electric cars on the world’s roads to about 16.5 million, triple the amount in 2018. Global sales of electric cars have kept rising strongly in 2022, with 2 million sold in the first quarter, up 75% from the same period in 2021.”

The pullback in TSLA appears overdone. The demand for EVs all over the world is strong. Those with long-term vision could reap respectable rewards here.


Sponsored Content