After achieving record deliveries in the second quarter, Tesla (Ticker: TSLAWealth Strength IndexAAPL is Extremely Up and trending Up) is getting ready to increase EV production at its factory in Fremont, California. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments,” wrote automotive president Jerome Guillen. Tesla has said it plans to produce “significantly” more than the 360,000 to 400,000 vehicles expected to be delivered in 2019, easing concerns over demand for the company’s electric cars.
This sent the stock up over 3%. It has come to significant resistance here and the short-term news is out. This presents us with an opportunity for a credit spread.