Tesla Motors Inc (NASDAQ:TSLA) stock is continuing last week’s rally, and it could now be heading back to its high of nearly $255 a share. The big question now is whether investors will be able to break that emotional $250 per share level once again.
Tesla volume surges
Trading on shares of Tesla Motors Inc (NASDAQ:TSLA) surged early this morning. The market has been open for less than two hours (as of this writing), and already 3.23 million shares have changed hands. The average daily volume is 5.68 million shares.
The Fly On The Wall noted a bullish trading pattern that’s worth keeping an eye on. The site reports that the pattern was confirmed when shares of Tesla Motors Inc (NASDAQ:TSLA) passed $235 each. If the pattern continues, then there’s an upside possibility of $260 per share. Resistance has been noted at $237.93 per share, while support is sitting at $235 per share.
Nevada tempts Tesla
One of the catalysts that’s been affecting Tesla Motors Inc (NASDAQ:TSLA) lately is news about the gigafactory. Whenever the automaker reveals more information, shares are expected to rise even further. Today The Arizona Republic reports that Nevada is trying to draw in Tesla with a promise of discounted electricity rates.
Recently the state passed a law that could give Tesla Motors Inc (NASDAQ:TSLA) a 30% discount on electricity for the gigafactory. Nevada also offers a streamlined development process, enabling the state’s governor to negotiate directly with companies that want to build there. In addition to Nevada, Arizona, Texas and New Mexico are also competing to land Tesla’s gigafactory. California is also making advances in an effort to woo the automaker into building there again.
What else is affecting Tesla stock?
Wall Street has also reacted positively to Tesla Motors Inc (NASDAQ:TSLA)’s decision to open its patents to anyone who wants to use them in good faith. Analysts generally have seen that decision as a positive move because it will bring Tesla’s technology closer to becoming the standard for electric vehicles.
Today reports say Indian automaker Mahindra & Mahindra is reviewing Tesla Motors Inc (NASDAQ:TSLA)’s open patents and considering using them to further the development of its cars. The automaker says it is still too early to tell if Tesla’s technology will give it a boost.