Tesla Stock Is Now Above $2,000 - Here's the Trade Now

Tesla stock has been on fire over the last week, month and year. Let's look at the charts for the stock after its latest run to new highs.
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Tesla  (TSLA) - Get Report stock has been on a hot streak, but not just lately. The momentum has been infectious throughout the year, with Tesla now commanding a market cap of $380 billion on Friday. 

That momentum has spread to other electric vehicle stocks as well, as Nio  (NIO) - Get Report, Workhorse  (WKHS) - Get Report and Nikola  (NKLA) - Get Report have all done well over the past few months.

It took five trading sessions for Tesla stock to rally 40%. At Friday's high of $2,081.68, Tesla stock was up more than 51% in the last eight trading sessions. Momentum from last week carried into this week after Tesla announced a 5-for-1 stock split.

Watch Jim Cramer & Rob Maurer discuss TSLA stock, Elon Musk, and Battery Day

Over the last three months, Tesla stock is up more than 150%. From the March lows, shares are up an astounding 493%. If that feels too cherry-picked, just realize that Tesla is up 390% year-to-date and more than 800% over the past 12 months.

So just how far can this thing go?

Trading Tesla Stock

Daily chart of Tesla stock.

Daily chart of Tesla stock.

I have been bullish on this name since its June breakout. That came as shares cleared the double-top in February and began finding $900 as support rather than resistance.

My longer term target has been the 261.8% extension, up at $1,969.69. Not many were looking for a possible run toward $2,000. But after closing above it on Thursday, it's got investors wondering just how high this name can go. 

Bears championing for a correction based on fundamentals seem to have missed the point. Fundamentals haven't driven Tesla stock this high — to a near-$400 billion market cap — so they're unlikely to be the stock's demise. Instead, it's simple market psychology driving this name. 

At $2,000 per share, a 5-for-1 split will put Tesla at $400. I don’t want to get ahead of our skis here, but a run to $500 then may not be out of the question, particularly if Tesla can hold onto some of this momentum.

That would be $2,500 in a pre-split world. Along the way, don't forget about the three-times range extension near $2,205, while the 361.8% extension comes into play at $2,588, for those wondering. 

That said, sometimes investors buy in ahead of a stock split and then we see a “sell the news” reaction afterwards. If that’s the case, bulls would love to see support come into play at the 10-day moving average, followed by the $1,650 to $1,700 area. This zone was resistance in July. 

Below could potentially send Tesla stock tumbling a bit, perhaps down to the 50-day moving average and even $1,350. 

Eventually this run in Tesla stock will end and I'm certainly not pounding the table here calling it a "buy, buy, buy!" However, I’m not ready to bet against Tesla yet, as there has been little success in trying to pick the top in this one.