What is going on moongate today? Let's have a quick chat about tesla. Now, if you happen to be a tesla investor, i have some great news for you. Tesla stock just received a massive price target upgrade from goldman sachs in this video. I will be going over the details and reasoning for that upgrade and then i will be doing a technical breakdown of the stock.

So we know what levels of support and resistance to watch as we get closer and closer to tesla's inclusion into the s p. 500. Before i get into all that, though, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i'm on my way to 10 000 subscribers and your help with hitting that goal would be truly appreciated. And as always, if you enjoyed this video, don't forget to drop a like, because it really helps with getting it in front of other people who may be interested, and now that i got that out of the way, let's get started.

It was just reported that goldman sachs is now saying: tesla stock is worth 780 dollars per share. Now, that's a pretty big number goldman sachs analyst mark delaney took his price target on tesla shares from 455. All the way up to 780, which was a very sizable increase of 71, the 780 target price, is the new high water mark on wall street. I actually don't think that's true, because before tesla went through its 5 for 1 stock split arc, invest was calling for 7 000.

So when you take the stock split into account that new price level would be 1400, but they were also looking at the year 2024. So maybe that's why it's not being counted anyway at this price level that would put tesla in the same league as facebook and obviously with such a big increase. Delaney has changed his rating on tesla from hold to buy. So what caused such a big change in heart in the analyst? The short answer is pretty much everything delaney sees electric vehicle share of new car sales around the globe, increasing faster than he previously expected.

He said we are raising our outlook for ev adoption and now expect evs to comprise 18 of sales globally in 2030 and then jump another 11 in 2035.. Next is the fact that falling battery costs and a proliferation of models available for many automakers will help evs gain ground, which would obviously be a benefit to tesla, and on top of that, tesla's evs are also becoming more profitable. Tesla produced a 9.2 operating profit margin. In the third quarter, up about five percentage points year over year, also tesla's margin is boosted by selling regulatory credits earned by making more than its fair share of zero emission vehicles.

I know that this last part is a little bit contentious, but the bottom line is that it is helping the business and finally delaney also likes tesla's vertical integration strategy. This was announced at tesla's battery day event and it's the concept that the company could design and create a superior battery for a cheaper cost. So, to sum this up, the ev sector looks like it's about to explode. The most expensive part of evs are their battery and those prices are falling tesla as a company is becoming more profitable, it's benefiting from the government, and on top of that, it's making its own technological advancements.

Things seem pretty good to me. Personally, i really like delaney's reasoning and he's not alone. Analysts are warming up to tesla stock, despite its high valuation. We've heard this time and time again how tesla is overvalued, but when it comes down to it, the bears have lost more than 25 billion dollars.

Betting against the company, now 14 out of 39 analysts rate tesla shares at a buy. Now i fully understand that tesla is not everyone's cup of tea to each his own, and you should definitely invest in what you like with that being said, though, i do find the concept of betting against the stock, with so much momentum to be a little bit Insane, in all honesty, i think the volatility could pick up even more as we get closer and closer to tesla being included in the s p 500. As a quick reminder, last month, the s p dow jones said it would add. Tesla shares to the s p.

500, on monday december 21st, a move that could trigger a collective 73 million in new purchases from investment funds. Obviously, this is a very sizable shift, so i would highly recommend being prepared for large swings on both friday december 18th and monday. The 21st. Now, let's check out the charts, the stock market managed to close the week out on a pretty positive note, both the dow and s p, 500 gained 0.8 percent.

The nasdaq 100 was up 0.4 percent and when the dust settled on the day, tesla gained 1, which puts its stock at 599, which is within striking distance of its all-time high at 607.. Over the past week, tesla's up 1.7 over the past month, it's up 41 and from the start of the year until right now it is up 612. This incredible performance is exactly why elon musk is now one of the richest people on this planet. If you've been keeping up to date with my technical analysis, videos you'll be familiar with the current situation, but if you're new to the channel, here's a quick recap in august of this year, tesla put in an impressive rally from 673 all the way up to 502 And a lot of this was because of the excitement surrounding the company's 5 for 1 stock split.

Unfortunately, as soon as the stock split went through, tesla sold off down to 330 and eventually this triangle was formed. This was then followed by a bullish, breakout and a double top at 462, and then there was a sell-off. As we went into november, and a new relative low was formed at 380. Then there was a small bounce and a fourth rejection in the region of resistance between 450 and 460, and eventually, support was found just north of 400., then the big announcement came, tesla would be included in the s p, 500 and the stock shot from 407.

All the way up to the moon from the time of the announcement until right now, the stock has gained 47 percent. Clearly, tesla stock has a lot of momentum and i truly believe that this upward trend will continue and once the stock gets above the only resistance, which is the all-time high just below 608 dollars. The sky is the limit from a technical perspective. It's tough to call out areas of resistance above this price level, because the chart hasn't developed in this region and it would enter into a phase of price discovery.

With that being said, though, i would recommend watching the key psychological levels of 650 and 700. if, for whatever reason, my bullish call is wrong, you should know that the closest support isn't actually that close from the most recent close, we would be watching 541, which would Be a drop of almost 10 percent and if the bears managed to push tesla stock below that, we would then be watching the recent high of 502, which would be a drop of 16. Once again, you should definitely be aware of these levels of support, but i think it's much more likely that we see a new all-time high before the stock returns to 541.. You should also be aware of: what's going on in the rsi as of now, there is no divergence, but if tesla were to post a new all-time high and the rsi doesn't get above 80, that would be bearish divergence, which could be indicative of a future decline Or consolidation, just something that you should be watching for to get a better idea of what might happen in the immediate future.

Let's check out the 4-hour chart before i jump into this time frame. I want you to know that the name of the charting software that i use is tradingview and, if you're interested in it, there's a link to a free 30-day trial. In the description of this video, if you sign up it's a great way to support my efforts with this channel anyway, ever since the s p, 500 announcement, tesla stock has been caught in this bear flag, and once the rsi got really overextended, there was a breakdown That found support at 541 and since then the rsi has had an opportunity to cool off, and now it really looks like there's going to be a breakout to a new all-time high. I don't know how else to really say this, but everything about this chart is screaming bullish to me.

That doesn't mean you should invest at the current levels, though, because, as i mentioned before, the closest support is pretty far away, which increases your risk. So if you do so, please proceed with caution. Personally, i am a long-term investor and my philosophy is to buy shares at levels of support and then hold those shares for years to come at the time that i'm making this video i am invested in tesla and my cost basis is exactly 400, even though i Am up more than 50? I'm not gon na sell my shares, because i truly believe that tesla stock will be even higher years down the road for a little bit of fun, though i did just make a short term trade on tesla by buying a call option. The strike price is 605 dollars and the expiration date is december 11th.

So in future videos i'll definitely make sure to let you know how that plays out moving forward. If you're, not an investor and are more of a swing trader, i would recommend paying attention to these levels of support and resistance and watching for divergence in the rsi, as things continue to develop, both fundamentally and technically, with tesla i'll make sure to keep you updated In future, videos so make sure to have your notifications turned on if you made it to this point, the video you should know that i appreciate your time and i really hope that you were able to find some value in it. As a quick reminder, though, everything expressed in this video are my own opinions and i am in no way a financial advisor, so i would definitely recommend that you do your own research with that being said, though, i would love to know your thoughts on tesla in A comment below do you think that 780 is a fair price target, and what do you think will happen when the stock is included into the s p 500, if you're new to trading or if you're, just looking for a new trading account, there's a link to The weeble trading platform in the description of this video, if you sign up and make a deposit of 100, you will be awarded four free stocks, so it's definitely worthwhile to check out and as always, if you enjoyed this video, don't forget to drop a like, and If you haven't already don't forget to join the moon gang by hitting the subscribe button, all that engagement really helps me out thanks for watching and until next time best of luck in the markets. You.