Buying Tesla shares with target at 332 amid company’s global expansion

TSLA shares are climbing this July, with Monday’s closing price hitting 316.55. Market sentiment remains optimistic as the company's performance continues to improve. The rally was further supported by news that Tesla will not merge with Elon Musk’s xAI startup.

Speculations about a potential Tesla-xAI merger sparked concerns among investors over potential shareholder dilution and uncertainty about the company’s strategic direction. However, the official statement denying any such deal calmed the market and boosted the shares, as investors value stability and a clear corporate vision.

Moreover, Tesla is making its move into the Indian market. The company is opening its first showroom in Mumbai. This is a big step, considering the size and growth prospects of India’s automotive sector. While high import tariffs and modest consumer incomes could limit sales, Tesla views India as a market with major potential.

At the same time, competition from Chinese electric vehicle makers like BYD and NIO is intensifying as they rapidly expand their global presence. Their aggressive pricing strategies and fast-paced innovation are putting additional pressure on Tesla, which could limit its market share growth and ultimately weigh on the stock’s potential.

Analysts remain optimistic about next quarter’s financial results, forecasting stronger sales and improved profitability. These expectations are fueling positive market sentiment and keeping the stock on an upward trajectory.

Technical analysis confirms the current momentum: the 4H chart shows a well-defined uptrend. The Stochastic oscillator is nearing overbought territory, signaling strong buying pressure. That said, this could also signal a near-term correction if buying pressure starts to fade.

Current recommendation:

Buy at the current price. Take profit – 332. Stop loss – 305.