Tesla Motors Inc (NASDAQ:TSLA) has been in the headlines recently since holding its annual shareholder meeting at the start of this holiday-shortened week, but TSLA stock has been holding still. And while the presentation lasted roughly four hours, there was one big news item that came out of it — the new Model 3 will not come with free Supercharging.
The Model 3 is Tesla’s most affordable car yet. Currently scheduled for release toward the end of 2017, the car achieves about 215 miles per charge and can reach 60 mph in six seconds, and the best part is that it starts at just $35,000.
This was all known prior to TSLA’s meeting, but what wasn’t known was that Supercharging (a station that charges the car in 30 minutes rather than a few hours) would be an added cost. Owners of the Model S and Model X SUVs, each costing more than $75,000, have free access to Tesla’s 632 stations around the world.
TSLA stock took a bit of a hit the following day as a result, and since you all know how much I love stock charts, I want to take a closer look at what the recent trading action is telling us.
Tesla (TSLA) Stock Charts
The last time we spoke, TSLA was attempting to bounce off support. It had climbed a spectacular 91% to hit a six-month high of $239.34 on April 7, but pulled back on news that the company was recalling its Model X vehicle due to concerns about the third-row seat.
Not only did the $240 support line fail to hold, but the stock also fell below its 200-day moving average. And that’s where we are now.
After falling to a near-term low, Tesla is trying to make a comeback. The stock created support at the $204 area and has now bounced back roughly 8% to current prices. Long-term resistance is up at $240, which puts TSLA in the middle of its recent range.
Serving as near-term support is the 200-day moving average (the red line in the chart above) at just above $220. The stock has dipped back below it of late, even if slightly, so it’s a level I’ll be watching as it will likely determine whether the stock is headed higher or lower in the short term.
So for now, I wouldn’t call Tesla out as a buy or a sell.
If you own the stock, I’d hang on to your position until we see a convincing move either beyond or below the 200-day.
Matthew McCall is founder and president of Penn Financial Group, an investment advisory firm. Matt also is Editor of FUTR Stocks, the ETF Bulletin and Co-Editor of Breakout Stocks.
