FORGOT YOUR DETAILS?

To say that the electric car revolution has taken the auto industry and world by storm would be an understatement. The consideration by major auto producers to shift from traditional models as a core part of their business to heavily investing in technology to enable the production of electric vehicles signals a long term structural shift in the auto industry.

According to Statista.com, revenues for the global market for electric vehicles is expected to increase from $83bn in 2012 to $271bn in 2019.

(source: statista.com)

On a country by country basis, the chart below highlights China as the country with the highest number of electric vehicles in use as of 2016:

483,000 Battery Electric Vehicles, and
165,000 Plug-in Hybrid Vehicles

(source: statista.com)

Recently China took a major step by signalling their intentions to join a long list of countries seeking to ban the sales of diesel and petrol vehicles in the coming decades.

According to a report from the state news agency Xinhua, a senior official has told the Chinese car sector that the industry department in Beijing has begun “research on formulating a timetable to stop production and sales of traditional energy ­vehicles” while the chart below highlights China growing at a much faster pace than the U.S in terms of the number of newly registered electric vehicles for the period 2010 to 2016:

(source: statista.com)

The most ambitious and probably most well known brand in the EV space is Tesla   ( ) , led by the charismatic South African-born Entrepreneur, Elon Musk.

The company was founded in 2003, is headquartered in Palo Alto, California and has been listed on the NASDAQ Composite since 2010. It also has a market capitalization of $60bn.

/
Day Range
52 Week Range
Market Cap
Shares Traded
Volume

In it’s home market the company is the industry leader having dominated in terms of vehicles sales share for the first half of 2017.

(source: statista.com)

In the short to medium term, the share price looks set to continue to the upside after having consolidated in a “flag” formation since the end of June. During Monday’s trading session, the price broke through the downward trend line resistance as well as clearing the $356 short term resistance mark.

(source: investing.com)

We currently have some weakness in pre-market trade however a pullback could be used to enter for a buy/long trade.

Current chart:

Here’s what traders could look to do:

Buy TSLA $359/363
Stop-loss: $349
Take Profit: $382 (top of flag)
Risk:Reward is 1:2.7

Our open trades:

Symbol Name Last Trade Price Change Change (%)

To get your hands on my latest Stock Alert subscribe for FREE below!

Receive our research, trade recommendations and advice in your inbox


TOP
CLOSE