Source: Jin10 Data
Elon Musk's compensation plan is still the main reason for the rise in stock price on Monday. However, unless a more significant event occurs, the stocks are unlikely to exceed $200.
$Tesla (TSLA.US)$Stocks soared on Monday. The stock price closed at $187.44 per share, up 5.3%. The S&P 500 index and Nasdaq closed up 0.8% and 1%, respectively.
There is no risk of a stock valuation adjustment. CEO Elon Musk also did not make any notable comments. A Japanese electronics company announced a breakthrough in battery technology on Monday, but considering that it is mainly used for small consumer wearable devices rather than cars, the news is relatively small for Tesla.
Therefore, the salary plan approved by Musk remains the main reason for Monday's stock price surge.
In the past week, shareholders have re-approved Musk's 2018 compensation plan, granting the CEO approximately 300 million incentive stock options. They had to vote again because a Delaware judge withdrew the agreement in January, citing insufficient disclosure to investors.
Musk released the results on his social media platform X last Wednesday. On Friday, Tesla released all the details of the vote, showing that around 72% of the support rate approved this reward. The original proposal in 2018 passed with a support rate of 73%.
Wedge Bush analyst Dan Ives said that the compensation vote may have a $20 to $25 impact on Tesla's stock price. If he is correct, Tesla's stock price could reach about $200.
The stock has not yet reached this level. Investors may be waiting for the judge to withdraw her ruling.
According to stock market technical analysts, the $200 level of Tesla's stock represents some resistance. Resistance refers to the level at which investors have previously sold stocks. Breaking through the resistance level may indicate that the stocks will have a favorable market.
Frank Cappelleri, founder of CappThesis, said, "The $198 to $200 level represents the high point of April 29th." Investors can then focus on $205 (the high point at the end of February) and $209 (the stock's 200-day moving average). However, if the stock falls below this level, the moving average will decline.
Because the technical resistance level is near $200, a major move must be made to break through this level, and this move may happen soon. Tesla will announce its second-quarter deliveries in early July. According to FactSet data, Wall Street expects deliveries to be 450,000 vehicles, lower than the same period last year, which means that deliveries have declined year-on-year for the second consecutive year. If the performance exceeds expectations, the stock price may break through $200.
Slowing sales growth is one of the reasons Tesla's stock has fallen about 25% this year.
After delivery, Tesla's next important event is the robotaxi launch conference on August 8, where they will showcase a car and update the artificial intelligence training of the autonomous driving software. Perhaps there will be some surprises in the specific details. In the next few weeks, before the delivery data is announced, investors can expect the stock price to fluctuate between $180 and $200.
Of course, unless Musk makes or tweets about something else noteworthy.
Editor/Lambor