Jun 09, 2023

Tesla’s (TSLA) stock is approaching a downward resistance line from all-time highs and will look to add further gains.

TSLA – Weekly Chart

TSLA – Weekly Chart

The price of TSLA is now around $224.50, with the resistance just ahead, which could lead to a $300 price range.

Tesla stock jumped 5% on Wednesday after subsidy changes meant more customers are eligible for a tax incentive. All of Tesla’s Model 3 sedans are now eligible for 100% of the government’s tax subsidy of $7,500. That could boost demand as the rear-wheel-drive model was previously only eligible for 50% of the subsidy. 

Consumers in California could purchase a Tesla EV for just over $25,000 if they qualify for the discounts based on their income. 

Wall Street analysts remain bullish on Tesla, with Piper Sandler analyst Alexander Potter attaching a buy rating and a $280 price target, which would be a 25% upside. 

Tesla set a lofty target of 1.8 million deliveries this year, which may require additional production capacity. The company also has potential future revenue streams from solar, batteries, and its planned robo-taxi service. 

Reports on Thursday said the company is in talks with the government of Valencia, Spain, to build a factory in the region. According to newspaper reports, the company’s total investment could be more than 4.5 billion euros ($4.83 billion). 

Other reports said that Tesla may begin manufacturing EVs in India and establishing a vendor base there. The current setup means that cars are manufactured in China and exported to India. 

“The government is willing to give time for setting up a domestic vendor base but Tesla will have to indicate a period by which the duty concessions on components granted to it will come to an end,” Indian government officials told Financial Express.

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