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3 Reasons Why TSLA Hits New All-Time High


TSLA, Tesla Reasons For New All Time High

A confluence of events could propel Tesla (TSLA) to new all time highs.

Released on Sunday, April 22, 2018, 3:30 PM ET
by Email Russ UrbanContact SpeculatingStocks

Pittsburgh, PA (SpeculatingStocks) - Investors have been abnormally down on Tesla (NASDAQ:TSLA) as of late with the stock trading sideways to down since mid-January. Fundamentally, last quarter, the company reported its worst quarterly loss ever. That low-point in Tesla history could end up being a Godsend because now Tesla has Elon Musk’s full attention.

News story recently hit the wires that Elon Musk has been sleeping at the Tesla factory. He is ensuring that production of Tesla’s latest model is meeting its expected production schedule. Elon Musk does well when SpaceX, The Boring Company, Hyperloop and Tesla all have his attention, but when one item has his attention, we should expect that he will be able to meet the short-term goals set out for Tesla.

Meeting Tesla Model 3 production goals is the first reason that Tesla could reach all-time highs. The Street hasn’t completely bought into this idea yet, but it’s worth a good many points higher to the stock. Through this process of learning to meet production goals, Tesla will use the same techniques long into the future to be a more on schedule manufacturer of electric vehicles. This is a scary prospect to its competitors and will demand a higher market cap for Tesla.

The second reason why Tesla could reach new all-time highs is the out of the blue increase in crude oil prices and in turn RBOB (unleaded) gasoline. Saudi Arabia wants to see oil go rise to $100 a barrel. Crude oil currently sits at $68. Guess what? Electric vehicles will be back on the tongue of car buyers looking to save money at the pump, by using a charging station instead. Tesla is the #2 electric car maker behind only Renault-Nissan. This uptick in sentiment towards electric cars again is worth increase market share to Tesla over its competitors.

With rising oil comes rising demand for alternative energy such as solar. This brings us to our third reason why Tesla could find new all-time highs above $389.61. In November of 2016, Tesla acquire SolarCity for $2.6 billion. SolarCity manufactures, markets, and installs residential and commercial solar panels. First Solar (NASDAQ:FSLR) recently saw its stock jump on increased demand seen in China as well as an upgrade by a Merrill Lynch analyst. Another positive sign that the solar industry is perking up is SunPower’s (NASDAQ:SPWR) acquisition of SolarWorld Americas, a top US manufacturer of solar panels. Tariffs of 30% on solar panel imports should also help US based solar manufacturers. Tesla being not just an electric car manufacturer, but also a solar play is worth a few more points to TSLA stock.

A bonus reason to top it all off is potential profitability this year for Tesla. The sky is the limit after Tesla achieves profitability. Elon Musk is seen as a modern-day Steve Jobs. Tesla’s $49 billion market cap will seem cheap. The smart investors are taking advantage of this lull in Tesla shares with significant, latent catalysts ahead.

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⇒ About the Author of this News Article:

Russ Urban has been following the stock market for over 18 years and holds a Bachelor's Degree in Finance. From a young age, he watched CNBC with a keen eye and became obsessed with the market and technology. Russ Urban has written hundreds of stock articles and stock picks through the years since he founded, Inc. in 2006 and holds strong faith in the power of the markets and capitalism.

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