Luckily for bears who did not bet against the stock, Tesla’s (TSLA) historic 21.92% gain would have wiped them out. The company added more market capitalization on Thursday than the total valuation of both General Motors (GM) and Ford Motor (F).
Tesla is now the 12th most valuable company in the U.S. In the last quarter, the company posted a slight increase in profit margins of 17.1%. This exceeded the consensus estimate of around 15%. This also reversed several quarters of falling profitability. More importantly, CEO Elon Musk said that the company will produce more affordable models. In addition, it will scale up production of the Cybercab in 2026.
Unusually, the company does not have a full self-driving product available in its EVs. However, the company needs ADAS – autonomous self-driving – in Cybercab. Investors are inferring that the company will have the software ready for both, to meet its targets.
On the charts, Tesla stock closed at $260.48, a level that was previously a bearish “double top.” When the daily volume exceeded 200 million shares on Thursday, the momentum should lead to an uptrend in the stock. The next resistance level is at $300 and then around $350.
Your Takeaway
Investors who took advantage of TSLA stock falling below $220 last week might consider taking a profit. Long-term investors may continue holding the stock for bigger gains.
