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Tesla Share Price Keeps a Bullish Tone Ahead of Battery Day Tomorrow

nasdaq 100 index
nasdaq

Tesla share price closed higher on Friday, despite a generally bearish outlook for the broad market. Tesla gained over 4% last Friday as investors prepare for the company’s annual stockholder meeting and Battery Day, to be held tomorrow.

Elon Musk sure knows how to tease before an important event. A very active presence on Twitter, Musk shows how social media helps a company gaining exposure, something other carmakers lack completely.

The Battery Day, linked to the annual shareholders meeting, will be closely watched tomorrow. Musk tweeted that the company will unveil exciting things, fueling all kinds of scenarios from market analysts.

Tesla Energy currently represents just a small portion of the company’s business – it generated only $1.5 billion during the 2019 fiscal year. However, it is projected to grow to a $12 billion business a year by the end of the decade and a staggering $200 billion by the end of 2030.

Any improvements announced on Battery Day that may increase the energy storage revenue is likely to have a positive impact on Tesla’s share price.

Musk Hints at Record Quarter

Elon Musk urged employees to do their best in the days remaining until the quarter ends. He hinted that Tesla has a chance at a record quarter, fueling expectations that the company will easily beat earnings.

In a stunning move for the electric vehicles market, Nikola’s CEO announced that he is stepping down, sending Nikola shares tumbling more than 30%. Viewed as a competitor for Tesla, the news could further fuel Tesla share price rally.

Tesla Technical Analysis

Tesla is viewed higher in premarket, at around $450. Let’s not forget that this is a company that recently split its stock and raised $5 billion in new capital.

However, the price remains in a bullish trend as the rising channel suggests. The $500 level acts as key resistance, and the price failed once. On a new attempt, bulls will likely push beyond the level, especially if Tesla delivers on its quarterly performance.

Bulls need a stop-loss below $360 to trade on the long side, as it represents the previous higher low Tesla share price made. As for the reward, a minimum 1:2 risk-reward ratio suggests a price target of $540-$550 is in the cards.

Tesla Share Price Forecast