Tesla is trading just below key levels but could be poised to offer investors a buy point in stock market trade after popping nearly 4% Wednesday as CEO Elon Musk teased a significant Full Self-Driving update, perhaps by the end of September.
TSLA advanced 3.6% to 319.92, trading just below its 50-day and 200-day moving averages, during Wednesday's stock market.
Tesla stock edged up 0.7% to 322.27 at the stock market close on Thursday.
A decisive move above the 50-day and 200-day lines could offer a trendline entry or, alternatively, 338 could be another early entry, according to MarketSurge analysis.
Musk on Wednesday said that Tesla is training "a new" full self-driving, or FSD, update which could be a "big improvement."
"Probably ready for public release end of next month if testing goes well," Musk said on X Wednesday.
Tesla stock is still in a new base with a traditional 367.71 buy point. That base is within a much-larger consolidation.
However, the relative strength line has lagged for several weeks, reflecting somewhat lagging Tesla performance vs. the S&P 500.
Tesla Stock Trend
TSLA shares fell 4.25% last week amid broad market selling and as Tesla officially "expanded" its ride-hailing service to the Bay Area. Tesla currently has "safety operators" in the driver's seat, making it little different from FSD that can be equipped in current Tesla models.
In Austin, Texas, the limited robotaxi ride-hailing service has a safety operator in the front passenger seat.
A relatively small number of ride-hailing Tesla vehicles in those two areas. The service is open to influencers and other invitees, not the general public.
In late July, TSLA undercut its 50-day and 200-day moving averages as Musk warned of a "few rough quarters" ahead in the Q2 conference call.
The stock initially soared after the robotaxi launch but TSLA is now up less than 1% since the June 22 service release.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
As of Thursday's close, Tesla stock was up 35% since the April 22 Q1 conference call, lifted by robotaxi bets. Shares are down about 20% for the year, and 34% below their all-time high of 488.54.
Tesla stock has a 21-day average true range of 3.87%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Tesla stock has a 59 Composite Rating out of a best-possible 99. The stock also has an 83 Relative Strength Rating and a 56 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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