How Tesla Motors Inc Is Trading Ahead Of The 'D' Announcement

On October 1, Tesla Motors Inc TSLA CEO Elon Musk took the Twittersphere by surprise with a tweet about a new product release known simply as "the D." The announcement is scheduled for October 9.

Up, Up And Away

Interestingly, the reveal came on the heels of a September in which shares of the company fell by nearly 11 percent.

In a volatile session on October 1, Tesla ended the day at $251.42 and, figuratively speaking, never looked back.

Two days later, shares reached $262.49 before retreating to their current level. The tweet added $2.5 billion to its market cap over the course of a few days. Tesla now trades about 7 percent higher than it did just before the "D" tweet.

What Will The Announcement Reveal?

Some speculate the announcement will unveil a driverless car, a sports car, a truck, or even an all-wheel drive vehicle.

“One of the theories is that it might be a dual-motor, all-wheel drive Model S, which would make sense,” Edmunds.com Auto Editor Mark Takahashi told Benzinga last week.

“I think they’re going to round out to an SUV, a sports car and an entry-level car to have more product choices,” Tigress Financial Partners Chief Investment Officer Ivan Feinseth added.

Related Link: 5 Analyst Theories On The Tesla 'D' Tweet

The Technicals

Off the Musk tweet, Tesla shares have recovered nearly half of their losses from an initial decline off the stock's all-time high.

The stock, in fact, reached $262.88 at one point during Wednesday's session, a level that coincides with Monday's high of $262.45. Worth noting: It's also near what technicians consider a "true" 50 percent retracement level of $263.50.

If -- and this is a big "if" -- Tesla can clear that level off the upcoming announcement, the charts really open up to $280.00 and beyond. If Musk, on the other hand, fails to impress, its $235.65 low isn't out of the picture.

Disclosure: At the time of this writing, the author had no position in the equities mentioned in this report.