Tesla Stock Faces $389 Test After Flying Roadster Reveal

Tesla stock remained under pressure despite Elon Musk unveiling a redesigned Roadster with experimental flying capabilities. Shares closed at $362.44 on Oct. 15, down 1.29% during Thursday’s session.

The demonstration introduced new performance features developed with SpaceX technology. However, Tesla has not started customer deliveries and now targets production in 2028.

Investors are also preparing for Tesla’s third-quarter earnings on Oct. 21. The results will provide more information about automotive demand, profitability, and the company’s investment plans.

Tesla Has Launched a New Flying Car

TSLA stock will be in the spotlight as the company has launched a new flying car. In a statement on Thursday, Elon Musk said that the new car will be able to fly, a feature that has long been relegated to science fiction.

The new Tesla Roadster will be able to go from 0 to 60 mph in a record time of less than a second. It also has suction below the car to help it climb up a steep ramp.

The new feature suggests that Tesla is considering entering the electric vertical takeoff and landing (eVTOL) market. Some analysts believe that this industry could be substantial over time, meaning that Tesla could gain significant market share.

Still, there are some potential risks to remember. The first notable one is that Elon Musk admitted that the new flying feature may not work out as planned.

Second, the company has a long record of overpromising and underdelivering. For example, the new Roadster vehicle was first unveiled in 2019 and has not been delivered yet. Further, the Cybertruck, which was launched with substantial pop and color, has not been a success. Recent reporting suggests that its sales have plummeted in the past few months.

Tesla to Publish its Earnings

The next important catalyst for the TSLA shares will be the upcoming earnings report. These results are expected to provide signals on its revenue and profitable growth.

Analysts expect the upcoming report to show that its revenue growth was modest. Its vehicle deliveries stood at over 486,000, up from 464,009. It also deployed about 13.7 Gwh of energy products during the quarter.

Its delivery numbers usually provide hints on what to expect in its earnings report. In this case, analysts believe revenue will come in at $28.11 billion, down modestly from last year’s $28.09 billion. This slight increase will be due to the dynamics that occurred last year, when many buyers rushed to take advantage of the end of the tax credit program.

Analysts are turning bullish on Tesla. Goldman Sachs analysts upgraded their rating from neutral to buy, citing the potential impact of the ongoing gasoline price jump. Tigress Financial analysts boosted their target to buy and set a target of $550, while UBS reiterated the outlook to buy and set a target of $391.

Other top analysts who have maintained a bullish outlook for the stock are from HSBC, Wells Fargo, and JPMorgan. The average estimate among analysts is $412, up modestly from where it is today.

Tesla Stock Price Forecast: Technical Analysis

The daily chart shows that the TSLA stock has rebounded in the past few months. It jumped from a low of $297 in late July to a high of $389. Recently, however, the stock has remained within a narrow range between $ 350 and $ 389.

Tesla stock chart | Source: TradingView

The stock has remained above the 100-day Exponential Moving Average (EMA) and the Supertrend indicator. Therefore, the stock is likely to see a strong bullish breakout, potentially reaching the key resistance at $389. A move above that level will point to more gains towards the resistance at 4400.

This article is for informational purposes only and does not constitute financial or investment advice.