Tesla Price Target Breached
Tesla (TSLA: $253) has broken through our price target of $240 a share. We added the stock on January 20th at $199 and it is now at $253. We hereby raise our price target to $290 a share and raise our Sell Price from $120 to $230. Tesla can be volatile, so set your own sell stops according to your own personal financial rules. Another idea is to sell some at the money calls, which we will write about in the upcoming Bull Market Report newsletter for Monday morning. This can bring in a lot of money, lowering your basis, and lowering your sell price which can enable you to handle the volatility. For example, you could sell the May $260 call and bring in $13 a share, lowering you cost basis by that much. Not bad! (Check with your financial advisor about this.)
By the way, Tesla has received over 325,000 orders for their new Model 3 SUV. That's $325,000,000 in their pocket to use as they see fit. This is unprecedented in the annals of the automobile business.