Tesla Provides Great Risk Reward For Long Term Investors At This Technical Level

Tesla TSLA is gaining momentum with a strong outlook, despite concerns about slower growth in 2024. At current levels, the stock offers a compelling risk-reward ratio, especially since it's trading over 60% below its all-time highs, suggesting much of the slowdown is already priced in. Tesla expects lower vehicle volume growth in 2024 due to launching a new platform and other products, but its energy storage and generation business is projected to grow faster than the automotive segment. This marks a transition between two significant growth waves, from the Model 3/Y's global expansion to advancements in autonomy and new products on the next-generation vehicle platform.

Tesla's Optimus robot is progressing in its ability to perform factory tasks, potentially increasing automation and reducing manufacturing costs. The company's strides in robotaxi and Full Self-Driving (FSD) benefit from a favorable regulatory climate, with more states approving autonomous driving, paving the way for new revenue streams. The Cybertruck's production ramp-up to 1,000 units per week, despite some challenges, indicates growing manufacturing capabilities, hinting at significant revenue growth. Potential FSD licensing deals with other automakers could boost revenue and validate Tesla's autonomous technology. Finally, Elon Musk's emphasis on Tesla's long-term focus on autonomy and AI underscores the company's commitment to advanced technology, driving its future success.

Technical Perspective 

From a technical perspective, the $135 to $150 range offers a favorable risk-reward scenario for long-term investors, with the potential for 100% gains in the coming years based on the outlook for 2025 and beyond. While perma-bears might argue for lower prices, a weekly trend change could signal a buying opportunity, allowing investors to add to their positions with stops in a risk zone highlighted in the chart. This area has proven to be a demand zone, indicating that investors have a strong case for a long-term investment at this level.

Summary 

In light of both technical and fundamental setups, $TSLA is currently situated favorably and warrants consideration from investors who have been seeking an opportune entry point.

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