Shares of Tesla Inc. (TSLA) showed resilience in the stock market today, rising 2.7% during morning trading. This gain is significant as the broader electric vehicle maker’s peer group and the overall stock market experienced weakness. The rally comes after a 5.1% slump last Friday, following a remarkable 19.8% surge over the previous two weeks.
A Bullish Momentum for Tesla Stock
Despite the recent dip, Tesla’s stock has the potential to continue its upward trajectory. If it manages to rally a further 2.8% and close at or above $258.59, it will mark a significant milestone by closing at least 20% above the Aug. 18 closing low of $215.49. Wall Street often defines a bull market as a rally of at least 20% from a significant bear-market low.
It’s worth noting that Tesla’s stock reached its lowest point on Aug. 18, trading at a worrisome 26.5% below its July 18, 10-month closing high of $293.34. The current rally provides hope for investors as it signifies a promising shift in sentiment.
Outperforming in the Market
On Tuesday, Tesla’s stock rally proved impressive as it secured the position of the second-biggest gainer in the S&P 500 index. Meanwhile, the Global X Autonomous and Electric Vehicle ETF (DRIV) experienced a slight decline of 0.7%, and the broader S&P 500 index lost 0.3%.
Tesla’s ability to stand strong amidst market fluctuations is a testament to its resilience and continuing popularity among investors.
