Tesla stock is flirting with a buy signal because these factors are driving investor interest

Tesla (TSLA) is flirting with a buy point after TSLA stock rose Tuesday to hit a key level, and continues to bounce back as hype builds around the electric vehicle giant’s upgraded Model 3 and its upcoming Cybertruck.

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Stocks have advanced in six of the past seven sessions as Tesla stock appears to be breaking its month-long downtrend. On Wednesday, Tesla stock dropped a fraction to 256.90 during the market action.

The move comes as Tesla appears to be producing at least a few Cybertrucks per day at its Austin factory, while the launch of the updated Model 3 in China may be just a few weeks away.

The Cybertruck will be the EV maker’s first new passenger vehicle since the Model Y launched in early 2020. Tesla watchers estimate initial Cybertruck production at Gigafactory Texas is around 100 units.

The data on Tuesday showed Tesla’s insurance filings in China from August 21 to August. The number 27 rose 22% from the previous week to 17,000, according to CnEVPost. So far in August, there have been 56,400 insurance registrations for Tesla in China, which is nearly 90% more than in the same period in 2022, and keeps the electric car company on track to meet China sales in roughly the second quarter.

Meanwhile, local media reported that the upgraded Tesla Model 3, codenamed Highland, will go on sale in China sometime in September. Tesla has already started accepting reservations for the new Model 3. The Model 3 Highland was also spotted driving in Germany this week, according to posts on X, Twitter previously.

Tesla’s Autopilot getting better?

There was also news of Tesla’s full self-driving (FSD) efforts this week.

Late Tuesday, reports emerged that Tesla has also begun beta rolling out FSD for new vehicles equipped with Hardware 4, the company’s latest computer system that has more ports for data-gathering cameras.

The move comes after CEO Elon Musk did a 45-minute livestream of himself on Aug. 25 using “FSD v12 beta” to drive around Palo Alto. Musk only had to “intervene” once while driving, when his car tried to run a red light.

Meanwhile, on August 24, Reuters reported that the National Highway Traffic Safety Administration (NHTSA) says it is close to ending its two-year long investigation into Tesla’s driver-assistance systems, Autopilot and fully autonomous driving.

However, it is not clear whether NHTSA regulators will take significant action against the electric car giant.

NHTSA in late July sought more information about Tesla’s self-driving monitoring systems, according to reports Tuesday. Specifically, regulators wanted to know more about “Elon mode,” in which some people, including Musk, have disabled driver monitoring or alerts during self-driving.

During his live broadcast of the FSD trip, Musk looked frequently at his phone, but had no trouble paying attention to the road.

Tesla shares

Tesla stock rose 7.7% to 257.18 on Tuesday, crossing the 21-day line and closing just above the 50-day line.

With TSLA stock dropping below its 50-day line early Wednesday, investors can now use Tuesday’s high of 257.48 as an early entry.

Last week, Tesla stock jumped 10.7% to 238.59, ending a three-week losing streak. Tesla has made a new base with an official purchase point of 299.29, according to Marquette Smith.

Shares initially fell after the automaker reported its second-quarter financial data on July 19. Investor concerns about lower gross margins overshadowed the global electric car giant’s profits and revenues, which beat expectations. News of sales from Cathie Wood’s ARK Invest ETFs may also have fueled some bearish momentum.

Tesla stock ranks fourth in IBD Automotive Group. It has a composite rating of 97 out of 99. Tesla stock has a relative strength rating of 90 and its EPS rating is 93 out of 99.

Please follow Kit Norton on X, formerly known as Twitter, @kitnorton for more coverage.

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