Tesla Roadster: Can TSLA Break the Downtrend?

Tesla’s next-generation Roadster has finally been unveiled to the world in dramatic fashion, with everyone screaming: “Flying cars are real!”

Now obviously, no one is actually going to be driving those cars, at least not the commoner. The Roadster Rocket model will only be open to invited individuals only.

However, this back to the future type of reveal is nothing short of remarkable. I’ve never seen anything like that before. Wild. 

But more importantly, the reveal opens up more real talking points about Tesla and SpaceX’s merger, as the Roadster leans on Space-X technology for its propulsion.

With that, TSLA’s stock is priced to gap up from 362 to 379 this market open.

Now, will this publicity be enough to break TSLA’s downtrend?

TSLA is still fighting the downtrend

On the daily chart, TSLA has been making lower highs beneath a descending trendline. The recent rebound has brought price back towards that line, but the bigger trend has not yet been decisively broken.

However, what does show promise is TSLA’s recent price trend above the 20 day-EMA band (Bollinger Bands set to 1 sd). And also the break above its April Low around 350, which flips it back to support.

Holding that band would improve the shorter-term case. Losing it again, while bearish, could simply just be a retracement back to the April Lows before another shot higher (unless that $350 zone is decisively broken too).

Could Tesla and SpaceX become one company?

Online, many people are beginning to connect the two brands after such a public collaboration.

Both businesses share Elon Musk as their most recognisable figure, and the Roadster demonstration clearly draws on SpaceX engineering.

Honestly, while the hype is real, eventually we’ll have to see what the real orders are looking like, and whether or not scandals will be surrounding the technology.

But if all goes well, this will become a real talking point for Elon to suggest merging the two entities, which effectively creates some sort of “Robot empire” – with Tesla at the robotics helm, and SpaceX on the AI helm.

Demand-wise, EV cars have also reached an interesting inflection point. Elon says that Gasoline-only vehicles have fallen below half of global sales:

And this statement is very much verified by Nikkei, so everything does add up.

Interestingly, global demand for petrol cars are also dropping rapidly, so if Tesla’ Roadster can capitalise on the hype and this “Gasoline off” trend, things could become very interesting for the company’s stock.