Tesla (TSLAThe company appears to be getting closer to the launch of its highly anticipated Cybertruck, as CEO Elon Musk posted a photo of the “production candidate” vehicle on X, formerly known as Twitter, Wednesday afternoon. TSLA has gained ground in the market trade.
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Musk posted a photo of himself in a Cybertruck at the electric vehicle giant’s Texas plant on Wednesday. Tesla stock rose 1.6% to 236.86 during market trade on Wednesday.
“I just drove a production-candidate Cybertruck in my Tesla Giga Texas!” Musk wrote on X. Elon Musk added in a separate post that he believes the Cybertruck is Tesla’s “best product ever.”
In April, Musk announced a Cybertruck delivery event at the end of the third quarter.
Cybertruck “still on track”
During the company’s presentation of its earnings and revenue for the second quarter, Elon Musk confirmed that the Cybertruck delivery event will take place later in 2023.
Tesla stated in its second-quarter financial statements that the Cybertruck “is still on track to begin initial production later this year at its Gigafactory Texas.” However, the electric vehicle giant added that it is “testing Cybertruck vehicles worldwide for final certification and validation.”
“We can’t wait to start delivering them later this year,” Musk told investors in late July, referring to the Cybertruck.
Few technical specifications are known about the car. However, Kelley Blue Book estimates the starting price to be around $50,000. Tesla touted stats including a 500-mile range, 3,500-pound payload capacity and a 14,000-pound payload rating for the Cybertruck.
However, it is not clear what the actual specifications and prices of the Cybertruck are.
Tesla stock work
TSLA shares fell in early trade before reversing higher on Wednesday. The stock is up nearly 11% for the week — after a three-week decline.
Shares initially fell after the automaker reported its second-quarter financial data on July 19. Investor concerns about lower gross margins overshadowed the global electric car giant’s profits and revenues, which beat expectations. News of sales from Cathie Wood’s ARK Invest ETFs may also have fueled some bearish momentum.
Tesla stock fell more than 11% to 215.49 last week, in six straight losses. Two weeks ago, Tesla stock trimmed support at the stock’s 50-day moving average. Then TSLA stock fell more than 2% below its 10-week line, which is a clear sell signal, according to IBD Analysis.
Shares rose again by more than 7% on Monday. On Tuesday, an early rally of 4% put TSLA stock above its short-term 10-day moving average. Shares fell to a 0.8% lead, effectively closing even with the 10-day line.
Tuesday’s high has faded at 240 – a low for TSLA in late June. The 240 level is also below the 21-day exponential moving average. TSLA stock is still well below the 50-day line.
So any or all of these elements could act as resistance to the stock’s recovery. This may mean a longer period of consolidation. It also creates the possibility of a strong breakout through that common resistance and moving the stocks higher.
Keep in mind that the stock market is still in a correction. Monday’s advance marked the beginning of the rally attempt.
Investors should play defense with their capital and wait for a decisive move of Tesla stock – at least above the 21-day moving average, and preferably above the 50-day moving average, before considering a new purchase.
Tesla stock ranks fourth in IBD Automotive Group. It has a composite rating of 95 out of 99. Tesla stock has a relative strength rating of 88 and its EPS rating is 94 out of 99.
Please follow Kate Norton on Twitter @kitnorton for more coverage.
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