Tesla Shares Get A Charge Off Potential Move Into Energy Storage Market
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Tesla Motors Inc (NASDAQ: TSLA) shares were trading higher by $10 (4.7 percent) at $219.41 in Wednesday's session. A catalyst for the rally is the prospect of the company becoming a leader energy storage, and offering a home battery unit. A Deutsche Bank analyst is speculating that its upcoming product announcement may be geared towards this arena.
It was also reported on Tuesday that Tesla will show off its car models at the Shanghai Auto Show this week.
Investors are not waiting for the April 30 unveiling and have been aggressively purchasing since the opening bell. After a modestly higher open of $212.50 vs. Tuesday's close of $209.41, it only retreated to $211.69 before exploding to $220.44.
That marks the first time the issue has traded over $220 since it put in a pair of highs on February 5 ($225.48) and February 6 ($223.40). It has not closed above $220 since February 5, when it ended the session at $220.99.
It should be noted that Wednesday's rally is taking place on much higher trading volume than its 20-day average of 4.82 million shares. So far, it has already traded 4.6 million shares with over four hours remaining in the trading day.
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