The addition of tesla stock to the s&p 500 kicked Wall Street traders into a frenzy of action during the final quarter of 2020. As a result, the stock price exploded higher!
Billionaire Elon Musk likes to push the envelope and investors keep buying up tesla stock. But, is now a good time to buy?
Forbes wrote a decent article explaining the impact of telsa stock addition to the s&p 500 index. It’s kind of boring to read but filled with good fundamental tidbits.
Checkout the stock chart below to get an idea of how high the stock price has risen.
Tesla stock now is a component of both the s&p 500 and nasdaq 100 index. So, if you’re looking for an ETF with more exposure to tesla, nasdaq 100 is the one.
Key Information To Help You Make a Buying Decision:
- Tesla pay zero dividends
- Q3 2020 revenues up 39%
- Q3 2020 earnings up 131%
- Balance sheet cash rose to record levels
- Q3 Cash flow from operations hit $2.4 billion, a new record
- want more financial information, click here
Obviously, Telsa’s performance is off the charts and no wonder investors keep bidding the stock higher.
However, this begs the question, is now a good time to buy Tesla?
Well, it depends on your risk level. First, if you are a high risk investor what are you waiting for? Second, if you’re looking for a cheaper entry point you might want to wait for a pull back to the 10 day moving average. As I write this post that would be around $800 per share.
More importantly, the technical indicators signal a possible pause to Tesla’s rally. Notably, the MACD and RSI are perched at overbought levels.
Conclusion
All things considered, an old Wall Street saying goes like this, “buy weakness and sell strength“.
It’s hard to justify buying telsa stock at these high levels. But, it might be a good idea to wait for a pull back to either enter a new position or add to an existing one.
Be sure to checkout my Ultimate Portfolio + page – here you will find a complete list of companies killing it!
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