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On the most recent trading session, Tesla Motors Inc. stock has continued with its strong performance in the market, closing at $244.73 on Friday, indicating a 2.94% increase from the previous week, and 0.40% surge from the previous trading session. So far since the start of 2017, Tesla shares have performed better in the market.

Tesla’s ventures

Tesla CEO and founder, Elon Musk has recently expressed the company’s plans for the future, particularly on its automobile division. Musk has tweeted that the company is expecting to announce major upgrades and updates to its entire vehicle model every 12 to 18 months. Musk also announced via his Twitter account that Tesla’s autopilot for its cars with HW2 technology are being prepared for all HW2 cars.

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Unlike other companies in the auto industry, Tesla, with Musk’s recent announcement, will experience more constant upgrades at least once a year, which is much like what a tech company usually does rather than an auto company, which usually undergo major upgrades on their models at least every 5 years.

The company is well-known for constantly entering risky updates for constant innovation in accordance with Musk’s vision for the company, such as venturing into mass-producing self-driving cars in the near future.

According to Panasonic, Tesla’s exclusive supplier of its batteries and long-term partner, the two companies are planning to further their relationship in the business. Panasonic CEO Kazuhiro Tsuga has already mentioned the company’s interest in expanding ties with Tesla by including additional hardware supplies to the auto company such as a new technology known as organic photoconductive film CMOS image sensors, which is commonly used for sensing high-speed moving objects without the distortion.

Musk was also announced as part of US President Donald Trump’s council of business leaders, as the CEO is currently expanding Tesla’s production both in California and Nevada, creating 6,500 jobs after the construction of the plants, in line with Trump’s plan to bring back manufacturing jobs in the nation.

Stock performance

For the last 12 weeks, the company has already seen a 22.38% rally in the market and a 6.39% rally within the last 6 months. Its current market capitalization is at 39.37 billion. Meanwhile, the company’s stock has also outperformed S&P 500 last week by 3.09%, further increasing at 14.33% in the last four weeks.

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Tesla has already surged beyond the Relative Strength Index (RSI) level 70 and is currently at an overbought level of 79.82.

Although Tesla missed its vehicle deliveries for the fourth quarter of fiscal 2016, continuing with missed forecasts every quarter, the company’s shares still see a bullish future, taking investors and analysts with bearish outlook for the company by surprise.

Morgan Stanley analyst has put a “buy” rating on the stock after Tesla announced a series of positive plans for the company’s future. The analyst has previously scaled down its Tesla share target price from $450 to $242 due to the company’s poor performance in 2016; however, the share price was increased to $305 seeing that Tesla is set for a better year.

Conclusion

Investors can remain bullish on Tesla shares, seeing that so far within the first month of 2017, the company’s shares have performed strongly with consistent rallies and currently seeing an improving performance session-after-session.

 

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