While yesterday’s news of the disclosure of Ron Baron $300 million investment was the catalyst to turn around the stock from a week of languishing at the $220 level, $TSLA followed up today with another nice opening on a couple of positive news items.
First we had a couple of Elon Musk tweets indicating that “Tesla is working exclusively with Panasonic for Model 3 cells” and that “S and X cells are also Panasonic.”
Second, Barron’s reported that “Pacific Crest’s Brad Erickson visited Tesla Motors’ (TSLA) Fremont factory and came away feeling encouraged.” In particular Brad indicated that “after a Fremont factory tour and updated channel checks, we are more positive on Tesla in the near term.” and “Model X production run-rates are hitting benchmarks. In a tour led by VP of IR Jeff Evanson, commentary indicated that Model X production is ramping in line with Q2 expectations, and we found the tone incrementally more confident regarding potential further quality issues for X. Company appears to be tracking toward annual delivery targets.”
The stock responded to the news with a +$5 open, and was trading as high as $240.84. As the day advanced, the stock gave back most of the morning gains.
TSLA stock chart is all positive today: Heikin Ashi shows a 2nd session of “green” pay-day cycles, the stock is well above the 200-day moving average, and the MACD is back on the positive side as well. The TSLA Sept. 230 calls I purchased yesterday are up 15% as I write this.