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Can Tesla Motors Inc (TSLA) Shares Break Out To New 1 Month Highs?

Tesla Model X

Tesla Motors Inc (NASDAQ:TSLA) stock has had a mixed fortune this year. While the share price declined 7.2% over the last six months, year to date, it recorded 3.3% gains.

The stock’s movement over the last one month has also been volatile. Tesla’s shares gained significantly around its third-quarter 2015 earnings release due to better-than-expected fourth-quarter delivery guidance. However, shares plunged in the following weeks due to rising concerns over its cash burn rate.

However, a couple of positive developments in the last few days have pulled up the stock. Earlier this week, Tesla revealed the pricing of all versions of Model X, with the base model starting at $80,000.

Thereafter, a Credit Suisse analyst maintained the Outperform rating on the company and stated that he expects the automaker to meet its fourth-quarter vehicle delivery target. He also believes that Tesla will outperform expectations in terms of earnings and cash flows next year.

This news drove the shares up by 5.2% in the last trading session, with an intra-day high of $230.83 that is close to the highest price of $234.58 over the last one month. If the positive momentum of the last few trading sessions continues, it is likely that Tesla’s shares will achieve new one-month highs.

Tesla currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include General Motors (GM), O’Reilly Automotive (ORLY) and Pep Boys – Manny, Moe & Jack (PBY).  All these stocks carry a Zacks Rank #2 (Buy).

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