Al Root
Tesla stock has had a wild month. The stock has done, well, nothing.
Coming into the final day of the month, Tesla stock was down less than 2% for October.
It feels impossible to believe. There have been plenty of outsized stock moves. Tesla shares dropped almost 9% after its Oct. 10 Robotaxi Day in Hollywood, Calif. failed to meet lofty expectations. And shares jumped about 22% after the company reported better-than-expected third-quarter numbers on Oct. 23.
All that drama just to run in place.
Tesla shares have traded for more than 170 months. The average move, up or down, for any month is about 18%. Shares have moved less than 2%, up or down, only 20 times -- including the yet-to-be-completed Oct. 2024.
Months like this happen a little more than 10% of the time.
Few investors would have bet that a month with an investor event and earnings would yield almost no change. Tesla stock, however, has a way of doing the unexpected.
Shares were down 0.5% in premarket trading Thursday at $256.17 while S&P 500 and Dow Jones Industrial Average futures were down 0.5% and 0.7%, respectively.
Coming into Thursday trading, Tesla stock was up about 4% year to date.
That isn't much of a move either. There has been plenty of volatility though. Shares were up about 86% from an intraday 52-week low reached in April. Shares were down about 6% from an intraday 52-week high reached just after third-quarter earnings were reported.
Looking ahead, shares are trying to break above resistance of about $265 a share. Resistance is a term technical stock market analysts use to describe levels where investors have taken profits in the past.
Getting through resistance can mean a breakout with more gains ahead. Tesla stock closed at $269.19 a share this past Friday, after earnings. Technical analysts would like to see another close above resistance to believe the breakout was real.
That's why investors should pay close attention to the $265 level in the final two days of the week.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 31, 2024 04:27 ET (08:27 GMT)
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