FUNDAMENTAL ANALYSIS : Tesla Stock: Roundup May 31

The stock has recovered from its latest downturn, which saw it go below $200 for the first time since December 2020, which is good news for Tesla stockholders.

Tesla stock increased 4.72% for the day and 8.7% for the week as of May 26 when it closed at $193.17. The following variables all contributed to the stock's increase:

- An agreement with Ford (F) allowing Ford EV customers to use the Supercharger network of Tesla starting next year. Ford can provide its consumers with greater convenience and range, while Tesla can increase its revenue from its charging infrastructure. This is considered as a win-win situation for both businesses.

- A report from Forbes that argued that Tesla shares will recover from their recent beating, as the company has a competitive edge over legacy automakers in terms of innovation, software, battery technology, and customer loyalty.

- A bullish prediction from Wedbush Securities analysts, who kept their outperform rating and $1,000 price target on Tesla stock, citing robust demand for the Model 3 and Model Y in China and Europe.

Tesla Stock Faces Challenges Ahead

- Legal and regulatory challenges in different markets. For instance, the National Highway Traffic Safety Administration (NHTSA) is looking into Tesla for possible flaws in its Autopilot technology, which has been connected to multiple deadly collisions. Ex-employees and consumers are suing Tesla over a variety of claims, including fraud, contract violations, harassment, and discrimination.

- Elon Musk's actions and remarks are unpredictable and volatile. The stock price can be significantly impacted by the Tesla CEO's unorthodox and occasionally contentious behavior. As an illustration, Musk has declared on Twitter that Tesla will no longer accept Bitcoin as a form of payment for its vehicles, citing environmental concerns. The value of Bitcoin and Tesla stock both fell precipitously as a result.

While there are positive factors supporting Tesla stock, including the Ford agreement, positive reports, and analyst predictions, the presence of legal and regulatory challenges as well as the impact of Elon Musk's behavior introduce uncertainties that could influence the sentiment on the stock. Investors should consider these factors when making decisions about Tesla stock.

Fundamentally I remain neutral as I see nothing immediate in the short term to cause major movements.

Technical Indicators


Technically speaking TESLA is extremely bullish and is it worth noting that only one oscillator at the moment is indicating overbought while all other remain neutral in a extremely bullish market which is very rare.

I will publish a technical analysis markup on TESLA tomorrow