Tesla’s share price has been rallying sharply on the Nasdaq this week, reaching close to $900.00 level, after the world’s largest electric automobile posted extremely impressive earning results and sales.
The much-awaited Q3 report came after Wednesday’s closing bell and showed that third-quarter revenue for Tesla rose to $13.76 billion from $8.77 billion a year earlier, slightly beating analyst expectations.
Most impressively, Tesla’s automotive gross margin, excluding environmental credits, rose to 28.8%, from 25.8% the previous quarter. Moreover, Tesla’s overall average price fell as it sold more lower-priced Model 3 and Model Y cars, but it raised prices in the United States.
Tesla actually sold 1 million electric vehicles, marking a huge milestone for the company amidst supply chain issues, which had previously spooked the market, due to chip-shortage issues.
Still, the months ahead will be challenging for Tesla, as the supply chain issues has worsened. Tesla’s earnings statement strongly implied that the company is managing this issue well.
Last year Tesla bought massive amount of Bitcoin around the $37,000 level on average, meaning that a current prices, Tesla’s BTC holdings nearly doubled this week when Bitcoin hit $67,000. This fact is also propelling Tesla’s share price higher.
Tesla Short-term Technical Analysis
According to the four-hour time frame Tesla’s stock price has activated a large, inverted head and shoulders pattern, with the pattern in full swing towards its overall upside objective.
A final push towards the $1000.00 area is now required to complete the bullish pattern target. Bulls are also inching away from Tesla’s al-time price. A move above the current all-time high could prompt strong technical buying.
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Tesla Medium-term Technical Analysis
According to the daily time frame Tesla’s stock price is still undergoing a huge technical test of breakout resistance, around the $900.00 level, after forming a massive bullish reversal pattern.
If the pattern is ignited Tesla’s share price could go parabolic. According to the overall size of the pattern a massive rally towards the $1,400 resistance level could be about to happen.
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