There's founder Elon Musk's "master plan." There was the unfortunate May death of a Florida driver linked to his using his Tesla car's Autopilot. There are government agencies looking into whether the company withheld information on that death in a recent offering.
But if you are looking at Tesla from a strictly technical standpoint, ignore the noise and and look at the company's stock movement and its chart.
But that rise pushed the shares back over the 100-day moving average, which has long been an important benchmark. It usually means sellers have returned to the stock.
To the end, the chart, courtesy of TradingView, now suggest buying more TSLA stock can pay off.
The stock has now risen some 4.5% since June 13 although it is down 4.9% year to date compared with a 6.32% rise in the S&P 500 (SPX) .
The chart above shows the 20% bounce shares have made since its post-Brexit decline to around $190 on June 27 -- a move that sent the shares below all three moving averages. Even with the recent rise, the fact the stock has underperformed the S&P 500 index on a year-to-date basis is now an attractive quality for the stock, not a deterrent.
Why? With Musk offering more clarity about the SolarCity acquisition, this should eliminate concerns about the his judgment and what some believe are misguided ambitions. With boards of both Tesla and SolarCity endorsing the deal, Musk's new master plan, which he described as "accelerating the advent of sustainable energy," should increase the value of the combined company.
As the future value of Tesla is being considered, the stock -- after reclaiming its 100-day at $223.64 -- is now poised to break back above near-term resistance at $235.52, or about 3% higher. Once the $235.52 barrier is broken, TSLA stock should reclaim its April high of around $265 some time in the second half of the year, returning a premium of 16%.