With shares of Tesla Motors (NASDAQ:TSLA) trading around $161, is TSLA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores as well as over the Internet. Consumers and companies are looking to save at the pump, and what better way to do so than with electric vehicles?
Tesla’s West Coast Supercharger Corridor is officially open for business. Tesla announced the opening of the network via an official blog post Wednesday, and the kickoff is just one more check on Musk’s to-do list as he works to create a Supercharger network that spans the U.S. from coast to coast. Though the CEO still has a long way to go to meet his final goal, the West Coast Supercharger network now connects a new slew of stations that will allow Model S travelers to journey between San Diego, California, and Vancouver, British Columbia — all for free.
T = Technicals on the Stock Chart Are Strong
Tesla Motors stock has been exploding higher in the past several months. The stock is currently trading near all-time high prices and looks ready to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Tesla Motors is trading in between its rising key averages, which signals neutral price action in the near-term.