Using the word ‘rally’ in association with a motor vehicle manufacturer used to conjure up imagery of finely honed performance cars vying for victory across the forests and fields of Northern Europe in a race to find out who could cover a point-to-point route in the shortest time.
Nowadays, things are somewhat different. Tesla came from outside the automotive industry and took less than a decade to change the entire face of motoring and become one of the world's most highly capitalised motor manufacturers, whose stock is among the most traded of all companies globally.
As Tesla is not regarded as a car manufacturer, being more aligned with the Silicon Valley ‘big tech’ companies, the word ‘rally’, when referring to Tesla, piques a totally different image; the movement of Tesla’s stock on the NASDAQ exchange upon which it is listed.
It is rare for very highly capitalised, large multinational corporations at the very top level of the stock market to have volatile movements in their shares; however, out of the ‘big tech’ crowd, which includes giants such as Google, Amazon, Meta, and Netflix, it is Tesla that is the most susceptible to movements.
This could be down to the avantgarde way in which the company is run – it is a Bitcoin whale as a corporate entity, which is very unusual indeed – and it could also be down to the blustery, gung-ho persona of its founder & CEO, Elon Musk.
This week’s scenario is no exception.
Tesla stock has been on a steady but sure climb for quite a few months, peaking at the end of last week at just over $216 per share at lunchtime during the US trading session.
This is, by a narrow margin, the highest value in four months for Tesla stock at the FXOpen chart, following an upward rally that has put paid to last year’s pessimistic view of Tesla stock due to a continuous downturn in value which ended up with a rock bottom valuation of $108 in the first week of 2023.
The US trading session was exciting on Friday, largely due to the rally by Tesla having taken its value to the aforementioned four-month high at the FXOpen chart, but those with a keen eye for following the chart will have noticed that the end of the session demonstrated a tailing off.
The tailing off was by quite some amount. At lunchtime, Tesla shares were up to $216, whereas by the end of the session, just under $3 per share had dropped from the value, with the end of the trading day showing Tesla shares at $213.97.
Is this a minor end-of-week blip in an otherwise strong, weeks-long upward direction, or is it the end of this particular rally for Tesla?
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.