- Summary:
- Tesla share price on a tear higher despite the recent stock split. Pre-market price action suggests further upside, with strong interest remaining.
Tesla share price is on everybody’s lips these days. It continues to surge, starting the month of September on a tear higher.
At the current valuation, Tesla breaks some levels worth mentioning. It officially passed Visa in market capitalization, despite Tesla generating only $0.4 billion in net income when compared with Visa $11.8 billion. Moreover, Telsa’s profit margin of 1.4% is dwarfed by Visa’s 51.4%.
And yet is surging. Yesterday many U.S. brokerage house reported disruptions in activity – it turned out lately investors were rushing in to buy Tesla’s stock.
Bullish Price Action on Tesla Even After the Stock Split
Tesla is up another $20 billion on the share split. Moreover, it points to a higher opening today, as it trades pre-market well above the $500 mark.
Put it differently, it started the year with $78 billion in market capitalization, and now it is $355 billion higher. And rising.
Is Tesla the new Bitcoin? Judging by the charts, it looks so. At this rate, Elon Musk’s wealth passed beyond Mark Zuckerberg – on track to challenge Bezos.
Tesla Share Price Technical Analysis
The recent break higher comes after the price escape a running triangle. These are powerful, bullish patterns, that have one of the longest measured moves in technical analysis. For example, the move that follows a running triangle is the extended wave in the Elliott Wave analysis, often traveling beyond 161.8% of the longest segment in the triangular pattern.
A triangle like this must be retested – Tesla share price did the retest right after the break higher. It means that this would be the invalidation level for any long trade. For those brave enough to participate in the rally, consider going long at market with a stop-loss at the $400 level. Next, measure the distance and project it twice to the upside for a 1:2 risk-reward ratio.
Tesla Share Price Forecast
