The technical breakout in Tesla shares is continuing for a third day, as shares rise an additional 7%.
Elon Musk filed to say that he bought $1 billion in shares in the open market on Friday and that vote of confidence has lifted his net worth by far more than that today.
The hint on the breakout was on the chart, something I flagged last week as it happened. The rise above the May high following a series of higher lows was a textbook bullish pattern and it’s unfolded as well as a technician could hope for. Even before that, the 40% spike in Oracle shares was a warning to shorts in tech companies to be very careful.
Now TSLA shares a squeezing in a big way and not much stands between it and last year’s highs near $488.
At this point in the cycle, auto sales, margins and profits simply do not matter. When the memes move, they go until reaching ridiculous levels. Elon Musk is the master of salesmanship and he’s been able to tell a story of ‘full-self driving’ and robotics that investors want to hear.
