Tesla shares close higher on Tuesday, Argus upgrades the stock to “Buy” due to strong Model 3 performance

Tesla Incs (TSLA) stock has reportedly been upgraded to a “Buy” rating by Argus, due to strong orders of the companys Model 3 vehicle. Argus also revised up its price target for the stock to $444.

Tesla shares closed higher for the fourth time in the past five trading sessions on Tuesday. The stock went up 2.83% ($10.05) to $365.22, after touching an intraday high at $368.58, or a price level not seen since July 3rd ($371.35). In the week ended on August 6th the shares of the electric car manufacturer added 6.52% to their market value compared to a week ago, which marked a fourth consecutive period of gains and also the best performance since the week ended on April 9th. The stock has extended its advance to 12.91% so far during the current month, following a 10.55% slump in July. The latter has been the first drop in the past five months and also the steepest one since January 2016. For the entire past year, the shares of the NASDAQ-listed electric car maker lost 10.97%.

“Although the ramp-up of the Model 3 will boost labor and overhead costs in the near term, we expect these additional costs to diminish over the course of 2018”, Argus said in a note. “As such, we believe that Tesla will be able to reach its target of a 25% gross margin on the Model 3 late next year, in line with the margins already achieved on the Model S and Model X”.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $314.00, with a high estimate of $464.00 and a low estimate of $155.00. The median estimate is a 14.02% decrease compared to the closing price of $365.22 on August 8th.

The same media also reported that 10 out of 25 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 5 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 – $366.24
R2 – $367.27
R3 (Range Resistance – Sell) – $368.29
R4 (Long Breakout) – $371.37
R5 (Breakout Target 1) – $374.96
R6 (Breakout Target 2) – $376.64

S1 – $364.20
S2 – $363.17
S3 (Range Support – Buy) – $362.15
S4 (Short Breakout) – $359.07
S5 (Breakout Target 1) – $355.48
S6 (Breakout Target 2) – $353.80

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

Central Pivot Point – $341.80
R1 – $372.38
R2 – $387.85
R3 – $418.43
R4 – $449.01

S1 – $326.33
S2 – $295.75
S3 – $280.28
S4 – $264.81