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Tesla’s share price could be set to explode soon, as three key fundamental reasons provide a compelling reason why the world’s largest electric car maker could hit new all-time highs.
Firstly, CEO Elon Musk now says the EV maker’s Full Self Driving beta will be available to the general public in around four weeks. Full Self Driving refers to Tesla’s level 2 driver assistance software, which requires driver supervision at all times.
It should be noted that Level 4 and 5 are considered high automation in which the driver is no longer a necessity, according to the National Highway Traffic Safety Administration, citing the Society of Automotive Engineers. However, the move is seen as a step closer to full automation, an arena which Tesla is currently leading the way.
In a tweet on Wednesday afternoon, Musk said: “We should be there with Beta 10, which goes out a week from Friday (no point releases this week). It will have a completely retrained NN, so will need another few weeks after that for tuning & bug fixes. Best guess is public beta button in ~4 weeks.”
Secondly, Tesla filed an application with the Texas Public Utility Commission to sell electricity in the state last week. The application follows the start of a big battery build out by Tesla in Angleton, Texas.
This could be another potentially lucrative industry for Tesla, and Texas in particularly, one of the largest in the United States uses vast amount of power, and recently suffered a major power outage, due a nasty cold snap this winter.
Thirdly, Tesla’s satellites are connecting the world like never from space. Tesla is a pioneer in this space, and with the increase of the internet across the world Tesla’s market share is set to grow which provides a compelling case for more revenue generation for Tesla.
Tesla Short-term Technical Analysis
According to the four-hour time frame Tesla’s stock price is more bullish than bearish, with the price making important higher highs and lower lows since May, keeping the bullish short-term dynamic in play.
Additionally, the CCI and RSI indicators remain bullish, and suggest a solid dip-buying tone behind the stock to underpin any pullback, and potential push Tesla forward to the $780.00 area.
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Tesla Medium-term Technical Analysis
According to the daily time frame Tesla’s stock price has staged a breakout from a large descending triangle pattern. The breakout continues to hold despite relatively soggy upside momentum above the triangle.
If the broader stock market rallies I suspect Tesla will head back to all-time highs, and with improving fundamentals the technical do look good. The caveat here is that Tesla’s price is very much dependant on COVID-19, the USA and China, and how investors are rating the state of the world economy.
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