Skip to main content

Tesla gets its groove back: Electric car market broadens

Tesla (TSLA) closed up 9 percent today on strong volume, with over 12 million shares transacted (almost twice its recent daily average volume). 

The move above $220 and the 50 day moving average signals a bullish emergence from TSLA's recent base pattern. Are we seeing the start of a new uptrend in Tesla's stock price?

Here's an updated TSLA chart with today's closing price at $224.61. The stock closed near the high of its daily range, another indication of strength.



Elon Musk recently announced that Tesla would "open source" its patent portfolio, which should help fuel innovation in the EV market and encourage further build out of the needed electric charging infrastructure. Traders seem to have digested the patents strategy and decided in its favor. 

More on Tesla's patent strategy and Musk's vision for electric cars from Wired:
" ...Asked what Tesla shareholders thought of the company’s move, Musk downplayed the importance of owning patents, saying it was more important for a company to be constantly creating new technologies than to doggedly pursue lawsuits against other companies doing similar things.
“You see a lot of these battles going on with giant companies firing massive patent lawsuits against one another, the obvious example being Apple and Samsung,” he said. “You wonder who’s really benefiting there. And it seems like neither one. It doesn’t seem like it’s actually serving shareholders.”

Musk points out that electric cars still account for less than one percent of all auto sales. At this point, it’s far more important for Tesla to help drive adoption of electric cars, regardless of what company makes them. Most consumers must be convinced that the idea makes sense. They need to know that the infrastructure, including charging stations, is in place.

The hope is that, by opening up its patents, Tesla will help make this happen, since many companies will be able to focus on making better cars instead of making sure that all their patents are in the clear. It could also help with the development of charging stations that work with many different brands of electric car, since companies will be able to use the same technologies for charging without having to pay patent licensing fees.

Musk also thinks the move will help attract more top notch engineers to Tesla–and help retain the ones it already has. “Putting in long hours for a corporation is hard,” he says. “But putting in long hours for a cause is easy. I think it’s quite motivating for people."

You can read some of our prior posts on Tesla and Elon Musk in the links below.

 Related posts:

 1. Tesla vs. GM stock performance (it's not even close).

 2. Tesla hits new all-time high: do androids dream of electric cars?

Disclosure: I have no position in TSLA stock. I may choose to initiate a long or short position at any time in the future. Posts are educational material. No buy or sell recommendations or personalized investment advice are offered to readers.
Posts are strictly educational material. No buy or sell recommendations on securities or personalized investment advice are offered to readers of this blog.   - See more at: http://financetrends.blogspot.com/#sthash.5iFdyXLO.dpuf
Posts are strictly educational material. No buy or sell recommendations on securities or personalized investment advice are offered to readers of this blog.   - See more at: http://financetrends.blogspot.com/#sthash.5iFdyXLO.dpuf
Posts are strictly educational material. No buy or sell recommendations on securities or personalized investment advice are offered to readers of this blog.   - See more at: http://financetrends.blogspot.com/#sthash.5iFdyXLO.dpuf
Labels:

Popular posts from this blog

Lessons from Hedge Fund Market Wizards: Scott Ramsey

Today we continue our series, "Lessons from Hedge Fund Market Wizards" , with a look at Jack Schwager's interview with Scott Ramsey of Denali Asset Management.  Ramsey, a futures trader and CTA who works on the island of St. Croix, spoke to Schwager about his first foray into the markets, his evolution as a trader, and the process he stands by to protect and grow his clients' money. 1) . Ramsey started trading in college. He was roped into the OTC metals market via a broker's ad in the Wall St. Journal. The broker charged customers a flat fee to buy and sell as much as they wanted in a particular market for six month. At the time, Scott was a novice and didn't know about futures, so he traded metals in this fashion through the inflationary run-up of the late 1970s. 2) . Scott had to rethink his trading strategy after he bought silver at $50 an oz., only to watch it collapse to $26 following a long string of limit-down days. He sold as soon as the market...
Read more

Round trip stocks: momentum booms and busts

" No tree grows to Heaven ." - Old proverb adopted by Wall Street. What happens to hot momentum stocks when their rocket fuel runs out? How long can they continue to fly before they come crashing back down to earth? Why is the stock that you paid $100 a share for now trading at $39? These are questions that many novice traders and investors may be struggling with in the wake of the most recent market correction. Momentum stocks have been hit hard as the Nasdaq 100 and Russell 2000 indices have moved lower in recent weeks. Caught unaware by the recent slide, some traders may be wondering when their beaten-down stocks will snap back and allow them to exit with smaller losses (or even reach the mythical "break even" point).  While growth stocks still firmly within their uptrends may form constructive technical bases and move higher after this correction, others may experience sharper pullbacks or break down into full "stage 4" declines (see chart below...
Read more

Finance Trends 2019 Mid-Year Markets Review

Email subscribers of the Finance Trends Newsletter receive the first look at new articles and market updates, such as the following piece, sent out to our email list on Sunday (6/14).   Hello and welcome, everyone! If you received our last email notice over the July 4th holiday, you'll know that this weekend's newsletter will serve as a mid-year market update and a follow-up to issue #29, " How to Reinvest in a Rising Market ".   Ladies and gentlemen, without further ado, let's start the show...  Finance Trends Newsletter: Our Mid-Year Market Review When we last spoke, back in February, the U.S. stock market was rallying off its December-January lows. As the S&P 500 and Nasdaq reclaimed their 200 day moving averages in February and March, it became increasingly apparent that a lot of retail investors (and perhaps some institutional investors) were left under-invested while watching this recovery move from the sidelines.  The U.S. stock ...
Read more