-1694428015.png)
Tesla Rallying on Monday
Shares in Tesla are trading higher ahead of the open on Monday. The move comes amidst a surge of optimism linked to the Tesla Dojo supercomputer. The computer system runs computer vision video processing and recognition and will be used to train AI systems for the company’s self-driving vehicles. Tesla has outlined plans to funnel around $1 billion into development over the next year.
Morgan Stanley Upgrades Tesla Target
The news has been met with a wave of optimism among Tesla-watchers and Wall Street analysts alike. Leading the fan-fair is Morgan Stanley which has now upgraded its 12-18 month target for Tesla by 60% to $400. This is the highest target among Wall Street brokers and would put Tesla market cap around the $1.3 trillion mark.
Wider Market Application
In particular, Morgan Stanley is excited about the potential for the Dojo system to be used in wider application away from just self driving cars. Stanley also sees the technology as paving the way for an expansion beyond the firm’s current fixed price vehicle markets. In all, the news has seen a firm uptick in bullish sentiment towards the stock which should keep price underpinned near-term.
Technical Views
Tesla
The pop higher in Tesla shares today has seen the market breaking out above the 255.61 level resistance. While above here, and with momentum studies turning higher, the focus is on a break back above the 276.74 level and a continuation higher towards the 276.74 To the downside, should price slip back under the 255.61 level, 207.71 is the next support to note.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.