Spark Up with this Opportunity

This week’s tip has been selected for a couple of reasons, and no, it’s not in the hot pot sector. This stock is not only very volatile, but it’s also a rather controversial one, but I believe that irrespective of this, it has extremely high upside potential in the near, medium and long-term.

Today I’m looking to add a position on the innovative company called Tesla Inc. (NASDAQ: TSLA), who are best known for their range of electric vehicles, but also operate quite disruptively in other industries, including the energy sector.

Following a large (>8%) drop on high volume (~2x) on Thursday, April 4, 2019, and recovering some of that loss on Friday on higher than average volume, I believe now is a great time to go long.

Looking for a bounce in $TSLA from here.

For this trade I’m going to have an off-market stop-loss at around $245, which is about 11% downside risk from Friday’s closing price of $274.90. Considering the stock was trading above $375 just 4 months ago, I see huge upside potential here.

Additionally, Reuters announced earlier this morning that Fiat Chrysler ($FCAU) will be paying hundreds of millions of euros to $TSLA to pool their fleet in order to avoid paying fines for emissions. Details at this time (around 11am on Sunday, April 7, 2019) are quite light, so it’s anyone’s guess as to how this might affect $TSLA’s share price come Monday when the market reopens, but whatever happens, I expect it’ll just be short-term noise rather than anything paradigm-shifting.

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