Chart of the day

Where do we stand fundamentally?

Tesla (TSLA) is in the spotlight this week as it prepares to release its Q3 2024 earnings report on October 23. The company's stock has recently seen volatility, with a significant decline following its Q3 vehicle production and delivery report. Tesla produced 469,796 vehicles and delivered 462,890 units, numbers that matched Wall Street estimates but fell short of some optimistic expectations. Investors are eager to see whether the financial report will address concerns about falling gross margins, particularly in its auto segment.

Additionally, Tesla’s expansion into new areas, including the much-anticipated Cybertruck and Megapack business, could boost its stock performance if these ventures show significant growth. However, challenges persist, such as increased competition in China and ongoing scrutiny over its Full Self-Driving (FSD) technology due to safety investigations.

TSLA is retesting the 210 level of a broken bull flag for an extension higher to 400 and more in the long-term third wave. We need confirmation of an extension of the mentioned level for an upside continuation in the uptrend third Elliott Wave to 500. Invalidation of this immediate upside extension could come upon a break below 210.

An invalidation level of a third-wave long-term extension higher and a bullish cycle continuation is much lower at 141 meaning we are in the strong bull uptrend. As said the continuation of a retest extension could lead to a 400 target in the medium-term to long-term if the TSLA bounces and sustains a bounce from 210.

_{Try a long trade entry with a stop loss below 190 to target 350 and higher.}