Tesla shares gain the most since November 2015 on Wednesday, company’s Model 3 poised to reach production objective, CEO says

According to Teslas Chief Executive Elon Musk, the electric car maker is very likely to achieve its weekly production target of 5 000 Model 3 vehicles by the end of June. Musk also said that as much as 500 Model 3 sedans were now being produced on a daily basis.

Tesla shares closed higher for the sixth time in the past eight trading sessions on NASDAQ on Wednesday. It has also been the sharpest daily surge since November 4th 2015. The stock went up 9.74% ($28.37) to $319.50, after touching an intraday high at $322.17, or a price level not seen since March 21st ($322.44).

Shares of Tesla Inc have risen 2.62% so far in 2018 compared with a 12.72% gain for the underlying index, Nasdaq 100 (NDX).

In 2017, Tesla’s stock surged 45.70%, thus, it outperformed the Nasdaq 100, which registered a 31.52% return.

At an annual shareholder meeting on June 5th Teslas CEO told investors that the companys production lines had managed to produce 3 500 Model 3 sedans per week.

Last month Musk said the company was undergoing a “thorough reorganization” amid production issues, departures by senior employees as well as recent crash reports involving Tesla vehicles.

Because of all these factors, so far, Tesla has not managed to achieve its weekly production objective of 5 000 Model 3 sedans.

“The Model 3 ramp is understandably the central focus for investors as the company works to increase production”, Ben Kallo, analyst at Baird Equity Research, wrote in a research note, cited by Reuters.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $291.00, with a high estimate of $530.00 and a low estimate of $180.00. The median estimate is an 8.92% decrease compared to the closing price of $319.50 on June 6th.

The same media also reported that 11 out of 26 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 6 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Tesla stock are presented as follows:

R1 – $321.76
R2 – $324.03
R3 (Range Resistance – Sell) – $326.29
R4 (Long Breakout) – $333.08
R5 (Breakout Target 1) – $341.01
R6 (Breakout Target 2) – $346.02

S1 – $317.24
S2 – $314.97
S3 (Range Support – Buy) – $312.71
S4 (Short Breakout) – $305.92
S5 (Breakout Target 1) – $297.99
S6 (Breakout Target 2) – $292.98

By using the traditional method of calculation, the weekly levels of importance for Tesla Inc (TSLA) are presented as follows:

Central Pivot Point – $287.66
R1 – $299.16
R2 – $306.51
R3 – $318.01
R4 – $329.52

S1 – $280.31
S2 – $268.81
S3 – $261.46
S4 – $254.12