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Is the Tesla stock price about to surprise on the upside?

Despite a slew of bad publicity, the Tesla stock price may be on the verge of a stunning turnaround. So is TSLA about to burn the short shorts?

Tesla (TSLA:NASDAQ) settled at $623.31, up $6.71 (+1.09%)

Tesla has a habit of turning things around just at the right time, Just ask David Einhorn.

Einhorn, who rose to fame after his prescient call on the collapse of Lehman Brothers, could not repeat history with his bet against the Tesla stock price in 2018.

A riotous social media exchange between Elon Musk and the hedge fund legend ensued, resulting in the delivery of a parcel of ‘short shorts’ to Einhorn’s office.

Considering the EV manufacturers recent public relations stumble in China, one vocal supporter says there’s no better time to buy.

Appearing on CNBC, Michael Bapis, Managing director at Vios Advisors, made no bones about his views on TSLA:

“I think it’s the time to buy it right now and just put it away,” adding, “Close your eyes on the volatility for a little bit and bet on the fundamentals and the leadership of the company. I mean, you can’t get a better leader than they have.”

Vios Advisors is a division of Rockefeller Capital Management, which has served the famous banking dynasty for the last 14 decades. And therefore, may be worth listening to.

TSLA technical outlook

The daily chart underscores TSLA’s volatility in 2021. The stock’s inclusion into the S&P 500 index at the end of last year created an obvious uplift in its valuation.

However, the Tesla stock price has underperformed the index by a large margin in 2021, and currently only 10% higher than the Jan 4th opening trade.

Notably, during last month’s sell-off the stock held the support of a trend line from the March 2020 lows and subsequently is now trading above the key 200-day moving average at $613.22.

Furthermore, TSLA is approaching the 28th of May high at $635.59. A clearance of this resistance may act as a springboard to $721.00.

However, for that to happen, the price needs to hurdle both the 50 and 100 DMA’s at $646.56 and $684.18. respectively.

Now, the obvious counter-argument is the potential damage a Fed tightening cycle could wreak on growth stocks.

But, as i mentioned before, TSLA has a habit of bucking the trend and performing contrary to the markets expectations, and positioning.

Having said that, a close below the supportive trend line at $580.00 could lead to some momentum-based systematic selling.

However, according to Vios Advisors, this would present an even better entry price for longs to accumulate the stock.

Tesla stock price chart (Daily)

tesla stock price

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