Tesla (TSLA) had another monster session on Monday. After gapping higher early, running, pulling back, and running again, it hit a new 52-week high of $144.89, which is above its previous level of $138.25 on Aug. 2, and closed at $144.68 on 9.6 million shares. The closing price represented a one-year PPS gain of ‘only’ 117 points, or 430%, and YTD return of $111 points, or 327%.
Needless to say, the trend is aggressively higher in this stock and if the push continues, it is likely to test trend channel resistance, currently located near the $150 area. That said, while an acceleration to the upside provides profit potential, the trade is not without risks as TSLA, currently trading at 143x FY2014 earnings estimates, will report its Q2 results after the bell on Aug. 7. If the electric vehicle company falls short of Wall Street estimates, the stock will be punished. If it beats, it could run up towards $150 – $155 range.
TSLA remains a strong buy below $120.
Disclosure: No Position