Market Analysis: TSLA Share Price Soars 10%

News & Analysis / / Market Analysis: TSLA Share Price Soars 10%

FXOpen

12 Sep 2023, 11:59

The reason for the growth is the increase in the target price for TSLA shares by analysts at Morgan Stanley from USD 250 to USD 400 (about +45% from current levels).

Analysts see huge potential in Tesla Dojo — this supercomputer is capable of processing millions of terabytes of video of real-life situations captured from more than 4 million Tesla vehicles. It is designed to train artificial intelligence models to ultimately help the driver drive a car (Full Self-Driving, FSD system). Analysts say Dojo could serve as the same catalyst as AWS services that helped drive Amazon stock higher.

After analysts at Morgan Stanley upgraded their rating, TSLA's price soared 10%, exceeding USD 270 per share.

This momentum could help develop the current bullish trend that describes the trend channel in the provided chart of TSLA stock, with:
→ the level of USD 260, overcome with a gap, can now provide support;
→ after overcoming this resistance, the price reached the median line of the channel. Here, supply and demand tend to balance out — this could help the bulls gain a foothold above the breakout level of USD 260.

Bearish argument:
→ TSLA stock price has approached the bearish gap formed at the end of July. The USD 280-USD 290 area, where sell offers dominated a month and a half ago, could at least slow down the current bullish momentum.

In the coming days, the price of TSLA shares, like the entire US stock market, will be affected by news about inflation:
→ Core Price Index is scheduled to be published on Wednesday, 15:30 GMT+3.
→ The Producer Price Index is scheduled to be published on Thursday, 15:30 GMT+3. Retail sales data will also be published at this time. Be prepared for spikes in volatility.

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