Tesla shares are currently hovering around $391, having recovered after the October correction. Despite continued volatility, the company’s strong fundamentals and improving sentiment in the US tech sector create preconditions for further upside.
The third-quarter (Q3) earnings report published on October 21 was rather mixed. Tesla’s annual revenue amounted to $28.05 billion, remaining practically unchanged. At the same time, gross margin rose to 19.6%, while free cash flow reached $1.53 billion after negative figures in Q2. However, net profit dropped by 43% to $787 million, pointing to persistent pressure on the company’s financial results.
Operating performance gives grounds for cautious optimism. In Q3, Tesla delivered 486,532 vehicles, exceeding the previous quarter’s figure. Energy storage deployments reached 13.7 gigawatt-hours. Another important growth factor is the development of Tesla’s autonomous driving technology—the Cybercab robotaxi—along with Optimus humanoid robots.
Overall sentiment in the US stock market is gradually improving, with the S&P 500 and Nasdaq indices rebounding after a brief correction. Renewed investor interest in the tech sector could support further growth in the company’s stock.
From a technical standpoint, Tesla shares have recently broken through the $385 resistance level and are now consolidating near the $390 mark. The next upside target could be $450.
The overall recommendation is to buy Tesla stock at the current price of $390, aiming for $450 within two months. To mitigate the risk of adverse market movements, place a Stop Loss order at $350.
This content is for informational purposes only and is not intended to be investing advice.
