The move above $220 and the 50 day moving average signals a bullish emergence from TSLA's recent base pattern. Are we seeing the start of a new uptrend in Tesla's stock price?
Here's an updated TSLA chart with today's closing price at $224.61. The stock closed near the high of its daily range, another indication of strength.
Elon Musk recently announced that Tesla would "open source" its patent portfolio, which should help fuel innovation in the EV market and encourage further build out of the needed electric charging infrastructure. Traders seem to have digested the patents strategy and decided in its favor.
More on Tesla's patent strategy and Musk's vision for electric cars from Wired:
" ...Asked what Tesla shareholders thought of the company’s move, Musk downplayed the importance of owning patents, saying it was more important for a company to be constantly creating new technologies than to doggedly pursue lawsuits against other companies doing similar things.
“You see a lot of these battles going on with giant companies firing massive patent lawsuits against one another, the obvious example being Apple and Samsung,” he said. “You wonder who’s really benefiting there. And it seems like neither one. It doesn’t seem like it’s actually serving shareholders.”
Musk points out that electric cars still account for less than one percent of all auto sales. At this point, it’s far more important for Tesla to help drive adoption of electric cars, regardless of what company makes them. Most consumers must be convinced that the idea makes sense. They need to know that the infrastructure, including charging stations, is in place.
The hope is that, by opening up its patents, Tesla will help make this happen, since many companies will be able to focus on making better cars instead of making sure that all their patents are in the clear. It could also help with the development of charging stations that work with many different brands of electric car, since companies will be able to use the same technologies for charging without having to pay patent licensing fees.
Musk also thinks the move will help attract more top notch engineers to Tesla–and help retain the ones it already has. “Putting in long hours for a corporation is hard,” he says. “But putting in long hours for a cause is easy. I think it’s quite motivating for people."
You can read some of our prior posts on Tesla and Elon Musk in the links below.
Related posts:
1. Tesla vs. GM stock performance (it's not even close).
2. Tesla hits new all-time high: do androids dream of electric cars?
Disclosure: I have no position in TSLA stock. I may choose to initiate a long or short position at any time in the future. Posts are educational material. No buy or sell recommendations or personalized investment advice are offered to readers.
Posts are strictly educational material. No buy or sell recommendations on securities or personalized investment advice are offered to readers of this blog. - See more at: http://financetrends.blogspot.com/#sthash.5iFdyXLO.dpuf
Posts are strictly educational material. No buy or sell recommendations on securities or personalized investment advice are offered to readers of this blog. - See more at: http://financetrends.blogspot.com/#sthash.5iFdyXLO.dpuf
Posts are strictly educational material. No buy or sell recommendations on securities or personalized investment advice are offered to readers of this blog. - See more at: http://financetrends.blogspot.com/#sthash.5iFdyXLO.dpuf
