Tesla is flirting with a buy point after TSLA stock surged Tuesday to top a key level, continuing to bounce back as buzz is building around the EV giant's upgraded Model 3 and the upcoming Cybertruck.
Shares have advanced in six of the past seven sessions as Tesla stock appears to be breaking its month-long downward trend. On Wednesday, Tesla stock edged down a fraction to 256.90 during market action.
The move comes as Tesla seems to be producing at least a few Cybertrucks a day at its Austin plant, while an upgraded Model 3 launch in China may be a few weeks away.
The Cybertruck will be the EV maker's first new passenger vehicle since the Model Y launched in early 2020. Tesla observers estimate initial Cybertruck production at Gigafactory Texas to be around 100 units.
On Tuesday, data showed Tesla insurance registrations in China between Aug. 21-Aug. 27 increased 22% vs. the previous week to 17,000, according to CnEVPost. So far in August there have been 56,400 Tesla insurance registrations in China, that's up around 90% vs. the same period in 2022 and keeps the EV company on pace to roughly meet Q2 China sales.
Meanwhile, local media reports Tesla's upgraded Model 3, codenamed Highland, will go on sale in China sometime in September. Tesla has already started accepting reservations for the new Model 3. The Model 3 Highland has also been spotted driving in Germany this week, according to posts on X, formerly Twitter.
Tesla Automated Driving Getting Better?
There has also been news on Tesla's Full Self-Driving (FSD) efforts this week.
Late Tuesday, reports emerged Tesla also started rolling out its FSD beta for new vehicles equipped with Hardware 4, the company's newest computer system that contains more ports for data-collecting cameras.
The move comes after Chief Executive Elon Musk live-streamed 45-minutes of himself on Aug. 25 using "FSD v12 beta" to drive around Palo Alto. Musk had to make an "intervention" one time during the drive, when his vehicle tried to run a red light.
Meanwhile, on Aug. 24 Reuters reported that the National Highway Traffic Safety Administration (NHTSA) says it's close to ending its two-year long investigation of Tesla's driver-assist systems Autopilot and Full Self-Driving.
However it's unclear if NHTSA regulators will take significant action against the EV giant.
NHTSA in late July sought more information about Tesla's self-driving monitoring systems, according to reports Tuesday. Specifically, regulators wanted to know more about the "Elon mode," in which some people, including Musk, have disabled the driver monitoring or alerts while self-driving.
In his livestream FSD ride, Musk frequently looked at his phone, but got no nags to pay attention to the road.
Tesla Stock
Tesla stock surged 7.7% to 257.18 Tuesday, racing past the 21-day line and closing just above the 50-day line.
Even with TSLA stock edging slightly lower Wednesday, investors now could use Wednesday's high of 260.51 as an early entry.
Last week, Tesla stock leapt 10.7% to 238.59, ending a three-week losing streak. Tesla has forged a new base with an official 299.29 buy point, according to MarketSmith.
Shares initially pulled back after the automaker reported second-quarter financials on July 19. Investor concerns over falling gross margins outweighed the global EV giant's above-forecast earnings and revenue. News of sales from Cathie Wood's ARK Invest ETFs may also have fueled some downside momentum.
Tesla stock ranks fourth in IBD's automaker industry group. It has a 97 Composite Rating out of 99. Tesla stock has a 90 Relative Strength Rating and its EPS Rating is 93 out of 99.
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