Tesla May Not Be Done Rallying After Big Deliveries Beat

Tesla stock has been surging lately and Thursday was no different.

Shares were rising more than 7% on the day and bulls have to be happy with the way Tesla has been trading lately. With a market cap north of $200 billion, the company has now become the most valuable automaker in the world.

With Nio , Ford and others reporting delivery figuresfor the second quarter, Tesla didn’t disappoint.

Tesla’s second-quarter deliveries topped 90,000, easily beating consensus estimates for about 83,000 vehicles.

Investors should learn by now that, good news for Tesla can easily be the spark that ignites the stock price and sends it even higher. Let’s have a look at the charts after Thursday’s big move.

Trading Tesla Stock

Daily chart of Tesla stock.

Daily chart of Tesla stock.

Chart courtesy of Stockcharts.com

Just look at how powerful this move has been, with Tesla rallying a whopping 250% from its March low to Thursday’s high. Just this week, shares are up 25%. Thankfully for bears, it’s a holiday-shortened trading week, with markets closed on Friday for Independence Day.

Given the recent action, it’s no wonder analysts are assigning $2,000 price targets.

When I last looked at the stock almost a month ago, I was looking for a move to $1,000. However, I noted that while bears will likely try to sell into a rally at this key figure, it could create an even larger breakout.

We’ve now seen that play out, with a powerful move that’s taken shares above $1,200.

With the 138.2% extension in play at $1,205, I want to see if Tesla can close above this mark. If it can, technically speaking, it puts the 161.8% extension in the realm of possibilities, up at $1,351.

If Tesla stock fails to hold over the $1,200 area, we have to turn our attention to the downside.

Specifically, I want to see if shares can stay above the 123.6% extension near $1,115, followed by $1,000 and the 20-day moving average. Below all of these marks could put the 50-day moving average in play, followed by a possible test of the $800 to $850 area.

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