Hey what's going on everyone, i hope you're having a great day, i'm matt and in this video i'll, be doing an analysis of the world's most valuable car company, tesla i'll, be discussing why tesla recently hit new highs. I will explain both the bullish and bearish outlook and finally, i will do a technical analysis on the stock, so you have a better idea of what to watch for in the short term, if you are interested in content related to stock analysis, market updates or seasonal Trade ideas subscribe to the channel and don't forget to turn on your notifications, so you don't miss any of the new videos. It would be greatly appreciated if you could hit the like button because it really helps with getting this video in front of other people. If you have an idea for what stock i should cover next, let me know in the comments below alright, let's dive into it, for the few of you who don't know, tesla is an electric vehicle maker and its ceo is the innovator, celebrity elon musk.

Recently, it's been making headlines because the company stock has been breaking out to new all-time highs if you're a stock trader or just a tesla enthusiast, you might be wondering, what's been going on and what's going to happen next before i get into the details of my Research, i want you to know that i do not own any tesla. It doesn't really matter to me if the stock goes up or down. I'm just here to present my unbiased opinion. Now that the market is closed, tesla has posted an impressive eleven percent gain which puts the stock above fifteen hundred dollars.

Since the start of this year, the stock has rallied an impressive 266 percent, which is no small feat, considering the current state of our economy. In the first quarter it was announced that they had a revenue growth of 38. Their outlook on future quarters was positive and, as a surprise, to many they were able to produce a profit in q1. Then, as q2 started, they were hit pretty hard, as many companies were and suffered over a 50 percent decline.

Ever since mid-march, it's been seemingly nothing but clear skies for tesla part of the reason why the stock ran so high. So fast was because at the start of july it was announced that they beat their q2 delivery estimates. They were expected to deliver 70 000 vehicles, but they ended up delivering 90 000. This news was obviously well received and prompted a rally of 42 in july alone.

In addition to beating estimates, bullish sentiment was increased when it was announced that the company would be very close to the basic functionality of fully autonomous cars by the end of 2020.. These two positive announcements, along with the company's efforts to expand its manufacturing, gave many people the justification they needed to buy the stock which pushed it upwards. So that brings up the question: is this ridiculous move justified both the bulls and the bears have valid points? The bull camp likes to point out that the company was able to grow in tough economic times. If tesla is able to post another profitable quarter, which will be announced on july 22nd, the company will be one step closer to being in the s p.

500. Historically, induction into this index is correlated with bullish movement. Beyond that the bull camp likes to point out that tesla is doing a lot of work in china to ramp up its manufacturing in the shanghai gigafactory from a higher level outside of metrics and fundamentals. I've noticed that elon has been able to cultivate an impressive brand image for tesla.

They are strongly associated with tech, innovation, which helps to foster, excitement and demand. It's almost as if the company is viewed as an enticing narrative, rather than a boring balance sheet. Not everyone thinks that the story is amazing. The bear camp has a handful of criticisms in the short term.

They think the production and delivery numbers will be low because the main manufacturing plant in fremont was closed for a considerable amount of time in their 2020 quality review. Jd power and associates reported that tesla had the lowest quality car out of any major manufacturer. If not corrected, damage could be done to the brand image beyond public perception. There is a lot of competition within this space.

At this stock price tesla is three times more valuable than ford and gm combined. This puts tesla in the same league as toyota, which had a revenue of 279 billion dollars in 2019.. In the same year, tesla had a revenue of only 30 billion when it comes down to it. Tesla's fundamentals: don't do the best job justifying its current evaluation, especially when you consider the increased competition from companies such as nissan and volkswagen.

Both the bull camp and the bear camp have valid points, but thus far the bulls have been winning. In fact, they have been winning by a lot. The bears have lost billions of dollars, trying to short tesla. In my opinion, tesla is a high risk to reward play.

You could go long and hope that the momentum continues, but you should be aware that a large correction could happen any day if you're, not that bullish and don't want to go along, i would suggest staying away from the stock as much as you believe in the Bears viewpoint it hasn't worked out for them yet keep in mind that the next earnings report is on july 22nd and you can most likely expect a large move until then. Let's do a quick technical analysis breakdown, so you have a better idea of what levels to watch for from a charting perspective. Bullish targets are hard to predict when you're at all time highs, since today's close was above the psychological level of fifteen hundred dollars. If we're able to hold that the next level would be at twelve hundred if the stock could get there, that would be a gain of twenty nine.

I wish i could give you more specific bullish targets, but this area is untested. It's just clear skies as the chart develops in this region, we'll have a better idea of the areas of supply and demand. On the flip side, this may be a bull trap and the stock could get rejected at 1. 500..

The next support would be at the previous high of 1429. Then there would be another support at the last place, the stock caught itself, which was 1311.. If the bulls pushed the market below that line of demand, i would be watching for these two gap fills. I would consider these two regions to be extremely important, because this type of momentum is tough to sustain.

Additionally, the market loves to evaluate untested areas. Beyond that, i would be watching for a balance off of the region, just above one thousand and just below one thousand. If you're not already long, there would be a lot of risk in jumping in right now. It would be best to take a position as close to a previous support, as you can, if the stock declines through the support, you could quickly cut your position and only suffer a small loss.

As i said before, i would advise against shorting it, especially now in the short term, there's no reasonable place to evaluate your risk, whether you're a bear or a bull. You should be placing your trades at regions of support and resistance, so you can optimize your risk to reward as a side. Note i'm expecting this type of volatility to continue all the way up until the earnings report and right after whatever you decide to do make sure you have a plan. I have a feeling that the stock has more exciting times ahead.

I would love to know your thoughts on tesla. Let me know in a comment below thanks for watching if you enjoyed the video. Let me know by hitting the like button, if you enjoy this type of content subscribe to the channel and don't forget to turn on your notifications and as always best of luck in the markets.