Tesla (TSLA) is a stock people either love or hate. It’s curious that opinions are so polarized. In part, it may reflect key differences in the way people regard the theme of change. Some are for it, others favor the status quo. Since Elon Musk’s raison d’etre is to be an agent of global change, he and his company seem to elicit a visceral response from just about everyone.
Consider that Tesla is changing not only the way cars are built, but also the way they are sold. This weekend the company will open one of its “pop up stores” (aka Experience Centers) in the Hamptons, where you can take a test drive and get hooked on the Tesla driving experience. It beats any ride at Epcot Center because you can actually buy the ride.
Meanwhile, expect many more innovations from Tesla on the performance side. Last week the company announced it is already using new nanotech battery technology developed at the Lawrence Berkeley National Laboratory, which binds silicon to the graphite in the battery cathode, thereby increasing the charging capacity. Google, Kleiner Perkins and others have already invested in this technology, which can potentially double energy density. How does 600 miles per charge sound to you, with ‘ludicrous’ acceleration?
But what about the stock? In an article published on 7/21 I noted that shares of Tesla were approaching important resistance at the upper High Volume Node ($282) and suggested that active traders would be booking profits there. That turned out to be the case.
Today shares are approaching a key support level based on Volume Profile… the gold line on the chart. I expect buyers to be interested in shares at that level. If the general market stays bearish, however, the lower support zone is the High Volume Node at $230.
