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Musk on Watch

Tesla watchers are in for a treat this week as traders brace for the company’s first annual investors’ days which will be held tomorrow (March 1st) at the company’s gigafactory site in Texas.  Tesla shares have rallied more than 100% off the YTD lows, boosted by falling US inflation and better earnings from Tesla. The company recorded its highest-ever profits in Q4 and cited an encouraging outlook for the year ahead.
 

Hawkish Fed Expectations A Headwind

Recently, however, the rally has stalled a little as hawkish Fed expectations have returned on the back of the uptick in January inflation. With risks of a larger Fed hike in March, risk assets have corrected recently. Despite the broader tone of risk aversion, however, Tesla shares have remained resilient with the stock sitting just off YTD highs.
 

Third Masterplan

Looking to tomorrow’s event then, the meeting is set to see CEO Elon Musk reaffirming his commitment to Tesla and laying out plans for the future. There has been plenty of criticism of Musk for getting distracted over the last year with his acquisition of Twitter and various other controversies which unfolded. However, tomorrow will see Musk laying out the company’s third ‘masterplan’ which is likely to see Tesla stock rallying as Musk lays out his vision for a ‘sustainable energy future for Earth’.
 

Technical Views

Tesla

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The rally in Tesla, which has seen the stock breaking out above the bear channel above key resistance levels, has stalled for now into a test of 207.71. Momentum studies have flattened out, suggesting risks of a correction lower. However, while price holds above the 170.22 level the focus is on a further push higher and an eventual move up to 255.61 next. 

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