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However, the steady climb in the stock, up 111 percent this year and over 401 percent over 52 weeks, has traders forecasting that Tesla is crossing a key threshold.
It's on its way to be “considered a go-to stock, same as Apple, Microsoft and Amazon,” Scott Redler, of T3 Trading Group, told FOX Business.
Redler, who owns Tesla using an options strategy, points to key technical patterns that signal the stock is moving closer to $1,200 per share as shown in the chart below.
That would be a 36 percent jump from current levels.
Tesla shares are also serving as a tailwind for the Nasdaq.
|I:COMP||NASDAQ COMPOSITE INDEX||11548.281629||+42.28||+0.37%|
Since the market cratered on the coronavirus in late March, Tesla has jumped over 103 percent, as tracked by the Dow Jones Market Data Group. The only company with a $100+ billion market cap that is up over 100 percent.
And with several quarters of profitability under its hood, Tesla shares have climbed helping Musk, who does not take a salary, nab the first wave of a lucrative compensation package worth nearly $800 million, as reported by FOX Business. If the company continues to meet performance targets, Musk stands to reap potentially billions. His net worth per Forbes is over $38 billion.
Redler also observes that Musk has earned newfound respect after helping orchestrate the historical SpaceX-NASA launch over the weekend which sent two American astronauts successfully into space from American soil for the first time since 2011.
Bob Behnken and Doug Hurley are now on the Space Station courtesy of the company Musk founded.
Another bonus, Tesla's relationship with sister company SpaceX.
In an SEC filing ahead of the launch, Tesla disclosed that SpaceX has purchased certain “non-battery vehicle parts” and “certain battery components from Tesla” plus, “Tesla agreed to temporarily assign approximately 20 of its employees to support SpaceX on certain technical matters” all of these agreements earned the company over $4 million, not a huge haul but a window to potential future earnings.
And Musk, who has found himself in hot water over tweets, including the infamous one where he hinted he was “considering taking Tesla private at $420. Funding secured” which irked the SEC, is taking a break from tweeting.
On Monday, he announced he would be “off twitter for a while” perhaps to focus even more on taking his two companies to the next level?