Tesla Motors is an American automaker and energy storage specializing in electric cars and battery charging equipment . Its chairman Elon Musk who’s also CEO of SpaceX and Co-Founder of SolarCity , has said that he visualize Tesla Motors as a technology company and independent automaker, aimed at offering electric cars at prices affordable to the average consumer.
Tesla acquired SolarCity (NSDQ:SCTY) in November and with Tesla’s “Model 3” electric care generating a record-breaking $10 billion worth of pre-orders in just 2 days , the company shares ( NASDAQ:TSLA ) managed to make a +20% move this month . However if we take a look at the year-to-date performance we find out that Tesla is still showing a negative number because of the deep move lower early this year , so if you compare it to the giant General Motors Company (NYSE:GM) you will make a conclusion that it was a better investment even with just a +12% gain this year .
Tesla Technical View
After going public more than 6 years ago, Tesla saw a massive +1500% gain as the stock rallied from $15 to a high of $291 in only 4 years . But since then the stock stayed trapped in a 100 dollar range between 180$ & $280 area , even with some spikes higher or lower, the price bounced several times from both ends and it still needs a clear breakout above this consolidation area to resume the move higher .
Elliott Wave Count
TSLA ended the correction from 2014 peak in wave ((x)) pullback after a dip in February 2016 and since then the stock is proposed to have resumed its uptrend move which needs a break above $291 to confirm the bullish sequence. Last week , the stock broke above the April trend-line meaning that wave b pullback , which missed its equal legs at $170, is done at $178.19 low so while the stock remains above that level it’s expected to trade higher looking for a first target around $306 area . Consequently, if you are interested in having Tesla in your portfolio , you should be looking for a buying opportunity in the shorter time cycles when the stock makes makes 3 , 7 or 11 swings pullbacks against the November low $178.19.