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Tesla is testing key resistance near $300

Apr 5, 2018, 21:00 IST

Markets Insider

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  • Tesla is up more than 4% Thursday.
  • The company announced Wednesday that while it missed first-quarter productions targets, it expects to hit its Q2 target of 5,000 Model 3s per week.
  • Tesla also said it won't need another capital raise this year.

Tesla shares are up more than 4% at $300 apiece Thursday morning and are testing key overhead resistance.

The gains come as shares continue to squeeze higher despite Wednesday's announcement that Model 3 production figures missed targets. The electric-car maker produced 2,020 Model 3 vehicles in the last week of its first quarter after targeting 2,500.

Tesla said it expects to meet its second-quarter target of producing 5,000 Model 3 sedans each week and that it won't need to raise additional capital this year, aside from "standard credit lines."

Traders are paying close attention to the $300 level. Tesla shares withstood several tests of that area over the past year before the recent barrage of bad news finally caused support to give way.

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In late March, a Tesla Model X operating on Autopilot suffered a fatal crash, and days later CEO Elon Musk tweeted a joke about his company going bankrupt, sending shares tumbling.

The automaker has also seen its bonds come under pressure as its Model 3 production problems caused Moody's to downgrade its corporate rating.

Tesla is down more than 6% on the year.

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