Tesla Inc. TSLA stock is extending its dream run and traded solidly higher in premarket trading on Thursday.
Rally Accelerates: Shares of the Elon Musk-led company have been on a tear since the start of the year. On Wednesday, it bucked the tech industry-wide pullback and ended 2.28% higher, at $201.29, breaching the $200 psychological resistance for the first time since Nov. 7, 2022.
After the 65% year-to-date plunge in 2022, Tesla stock is up 63.4% year-to-date.
See Also: Everything You Need To Know About Tesla Stock
The upside is largely due to investor hopes that the worst may be behind after the electric vehicle maker missed deliveries target in 2022 amid production and supply challenges and economic uncertainties. Tesla’s aggressive pricing strategy and the impending commercial launch of the Cybertruck later this year are largely seen to push up volumes.
Separately, a probe by the National Transport And Safety Authority has found that a 2021 crash involving a Tesla vehicle does not have to do with its Autopilot but with the negligence of the driver.
More Upside Likely: Future Fund founder Gary Black tweeted that Tesla’s shares are the cheapest in the mega-cap space despite the recent gains. He expects Cybertruck to propel Tesla into the huge pickup truck category in 2024 just as the Model Y propelled it into the giant crossover vehicle category.
The stock has upside resistance around $210 level, where it found support in the middle of 2022. The next stop could be around the $250 area. On the downside, it has support around $180 and $164 levels. The relative strength index, which indicates momentum, shows the stock has reached the neutral zone.
Price Action: In premarket trading on Thursday, Tesla shares traded 3.77% higher, at $208.88, according to Benzinga Pro data.
Read Next: Tesla Bull Flags This As Real Problem For Rival EV Manufacturers
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.