Current trend

Shares of Tesla Inc., the world’s leading manufacturer of electric cars, are trading as part of a global correction at 267.00.

The company continues its expansion into the Mexican market: thus, yesterday, there were reports of an increase in the volume of investment in the construction of a gigafactory in Nuevo Leon from 5.0B dollars to 15.0B dollars over two years, and later this information was confirmed by state Governor Samuel Garcia.

Analysts at RBC Capital Markets maintained their rating on the company at Overweight with a price target of 305.0 dollars per share after visiting the Nevada gigafactory during investor events. Also, as part of it, it became known about plans to increase the power of the station from the current 35.0–38.0 GWh to 135.0 GWh. Analysts believe that Tesla Inc.’s policy in the manufacture of battery cells can benefit the company and at least protect against the risks of delays in partner deliveries.

The third-quarter financial report will be released on October 18, and analysts expect revenue of 24.98B dollars, up from 24.93B dollars previously, and earnings per share are forecast to be 0.79 dollars, down slightly from 0.91 dollars earlier.

Support and resistance

On the daily chart, the quotes are moving in a global ascending channel with dynamic boundaries of 330.00–230.00, approaching the resistance level.

Technical indicators are strengthening the buy signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO histogram is forming ascending bars in the buy zone.

Resistance levels: 282.00, 320.00.

Support levels: 251.00, 212.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 282.00 with the target at 320.00. Stop loss – 270.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 251.00 with the target at 212.00. Stop loss – 265.00.