Tesla Inc (NASDAQ:TSLA) Shares hit a new high of $493.83 today, helped in part by headlines surrounding a major competitor. Alphabet’s (GOOGL) self-driving unit Waymo saw several vehicles stop during the power outage in San Francisco, causing traffic disruptions, but fortunately there were no injuries. Tesla CEO Elon Musk addressed the incident on X, posting video footage and stating that “Tesla Robotaxis was not affected by the SF power outage.”
Looking back, Tesla stock has tended to surpass in decemberhistorically, ending the month at a higher level in seven of the last 10 years. Additional all-time highs are possible as today’s spike comes amid low implied volatility (IV), which has been a bullish combination for TSLA in the past.
According to data from Schaeffer’s senior quantitative analyst Rocky White, there have been two instances in the past five years where Tesla stock traded within 2% of its 52-week high while its Schaeffer Volatility Index (SVI) was at or below the 20th percentile of its annual range, as is the case with the current SVI value of 46%, which sits at or below the 6th percentile of its annual range.
In the two cases above, Tesla stock rose a month after these two signals, with a large average return of 17%. From its current position, a move of similar magnitude would put the stock at $577.78.
