Tesla jumped in Thursday's stock market action, flashing a buy signal and marking a traditional breakout.
TSLA shares advanced 6% to 368.81 in Thursday's stock market, moving above a traditional consolidation buy point of 367.71, according to MarketSurge charts. Investors could have been buying after Tesla stock cleared resistance at the 357-358 level.
Tesla stock was added to IBD SwingTrader Thursday morning with a price of entry of 358.38.
The stock continued to soar in Friday's stock market, jumping another 7.4% to 395.94 and notching its best weekly advance in three months. Tesla stock ended the week's stock market slightly extended, around 8%, above the 367.71 buy point.
The EV giant has flashed aggressive entries multiple times in the current base, only to quickly fall back in what had been a sideways market. However, since the end of July Tesla stock has advanced about 20%. Shares have gained around 10.5% in September.
Tesla stock gained 5% to 350.84 last week. The relative strength line for Tesla stock is below consolidation and 52-week highs, but has been trending higher for the past two months.
On Monday, Tesla unveiled its Megablock product, the latest addition to its industrial energy storage line. The Megablock includes the next-generation Megapack, and Tesla claims it is 23% faster to install with around 40% lower construction costs.
CEO Elon Musk claimed on X that the company is also starting to produce its own transformers. Musk also continues to tout the potential market for Tesla's Optimus humanoid robot.
Tesla reports third-quarter global vehicle deliveries in early October and Q3 earnings on Oct. 21. Analyst consensus has global Tesla Q3 vehicle deliveries coming in around 432,000, according to FactSet. That would be about 13% above the second-quarter total but still down more than 6% vs. Q3 2024. Few analysts have updated Q3 delivery targets since late July, however.
Tesla deliveries should be strong in Q3 as the U.S. tax credit expires on Sept. 30. After that, deliveries are likely to fall significantly in the U.S.
Tesla stock has a 65 Composite Rating out of a best-possible 99. The stock also has an 84 Relative Strength Rating and a 53 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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