Tesla rally looks unstoppable

6:14 PM January 8, 2021

Tesla (TSLA.US) stock surged 8% today and hit a new record high in heavy trading on Friday, with the electric car maker’s market value exceeded Facebook’s for the first time. Current market capitalization at $774 billion makes Tesla the fifth-most-valuable company listed on  Wall Street, just behind Google-parent Alphabet. Tesla's price rally has been going on for the eleventh day in a row and made CEO Elon Musk as the world's wealthiest person. The recent rally resulted in an even deeper split among investors regarding the future of the company. Billionaire venture capitalist Chamath Palihapitiya is very optimistic and in his view Tesla's stock could be worth three times its already lofty valuation. Also Wall Street analysts also  turned more optimistic toward Tesla. Morgan Stanley and RBC Capital both lifted their price targets this week. On the other side, Michael Burry, the investor whose billion-dollar bet against the US housing market was depicted in Michael Lewis' book "The Big Short," expects that Tesla stock would suffer a similar downfall. "Well, my last Big Short got bigger and bigger and BIGGER too," "Enjoy it while it lasts," Burry tweeted on Thursday. 

Tesla (TSLA.US) shares now sit about 18% higher year-to-date, already mirroring the massive returns seen throughout 2020. If the current sentiment prevails, next upward impulse towards another $1000.00 per share could be launched. On the other hand, if sellers will manage to halt advances, downward correction could be on the cards. The nearest support lies at $800.00 per share. Source: xStation5
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