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Can Tesla's (TSLA) Shares Break Out to New 1 Month Highs?

Tesla Motors, Inc. 's TSLA stock has had a mixed fortune this year. While the share price declined 7.2% over the last six months, year to date, it recorded 3.3% gains.

The stock's movement over the last one month has also been volatile. Tesla's shares gained significantly around its third-quarter 2015 earnings release due to better-than-expected fourth-quarter delivery guidance. However, shares plunged in the following weeks due to rising concerns over its cash burn rate. (Read more: Should Investors Worry About Tesla's Cash Burn Rate? )

However, a couple of positive developments in the last few days have pulled up the stock. Earlier this week, Tesla revealed the pricing of all versions of Model X, with the base model starting at $80,000 .

Thereafter, a Credit Suisse analyst maintained the Outperform rating on the company and stated that he expects the automaker to meet its fourth-quarter vehicle delivery target. He also believes that Tesla will outperform expectations in terms of earnings and cash flows next year.

This news drove the shares up by 5.2% in the last trading session, with an intra-day high of $230.83 that is close to the highest price of $234.58 over the last one month. If the positive momentum of the last few trading sessions continues, it is likely that Tesla's shares will achieve new one-month highs.

Tesla currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include General Motors Co. GM , O'Reilly Automotive Inc. ORLY and Pep Boys - Manny, Moe & Jack PBY . All these stocks carry a Zacks Rank #2 (Buy).

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O REILLY AUTO (ORLY): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

TESLA MOTORS (TSLA): Free Stock Analysis Report

PEP BOYS M M &J (PBY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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