Finally! Tesla Rallies For The Right Reason

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Tesla Motors Inc TSLA shares are trading higher $16.00 at $207.00 in Monday's session. Following some Elon Musk action on Twitter, the issue hovered at major support at the $180 level and is now moving for fundamental reasons in today's session. Before Monday's open, the company announced that Q1 deliveries will show a 55 percent increase over Q1 2014. That was all the Tesla bulls needed to clear the multiple highs at the $193.00 level, which occurred during premarket trading. By the opening of the regular session, shares of Tesla were trading at the $198 level and after a brief dip to $197.50, the market was flooded with overwhelmed short sellers who have been conditioned for recent pops in the issue. So far, shares have reached $207.75, which is just shy of the February 27 high of $208.55 before retreating to the current level. Longer-term investors may be focused on consecutive closes over $200, which have not been accomplished since March 4 ($202.44) and March 5 ($200.63). If the rally continues through its intraday high, there may be additional resistance at its February 26 high ($211.09).