Tesla Heading Toward Buying Opportunity as Misunderstanding Prevails

A Tesla Trading Strategy

Nvidia  (NVDA) , Netflix  (NFLX)  and Tesla  (TSLA)  have all been market leaders at various times. Here are the latest updates on all three of these widely-held, influential names:

Netflix (NFLX)

Netflix received an upgrade from Goldman Sachs, as the investment bank raised the stock from neutral to buy. In response, Netflix briefly traded above $100 for the first time in nearly a month.

Goldman sees Netflix shares climbing to $120, while the target for our remaining shares stays at $111. We reached our primary target early in March, as indicated here. 

Goldman sees the streaming giant’s recent price increases as a driver for revenues. Analysts also pointed to Netflix’ expanding margins as an additional bullish factor.

Netflix has an unfilled gap from late February, extending from approximately $84 to $90 (point A). Since the price is moving in our favor, we are raising our stop from $79.15 to $82.75 (red). Our initial stop was located at $75.

Netflix is recovering from its failed attempt to purchase Warner Brothers Discovery (WBD) . That battle was won by Paramount Skydance (PSKY) , pending regulatory approval.

Netflix is scheduled to report earnings after the close on April 16.

Nvidia (NVDA)

Nvidia held up well during the recent bout of market volatility, and has bounced back into its neutral range (shaded yellow). That range has been expanded to reach from approximately $198 to $165. Nvidia has been consolidating for the past five months. 

I was concerned that a drop below $170 could attract additional pressure, but the stock bounced back quickly and selling pressure never materialized. 

The lack of selling pressure on Nvidia’s breakdown bodes well for the stock going forward, as well as the overall market. The $4.3 trillion AI chip behemoth carries the heaviest weighting on both the S&P 500 and the Nasdaq Composite, giving it the greatest influence.

Tesla (TSLA)

The news on Tesla isn’t great, but it might not be as bad as it seems.

Tesla traded at a six-month low on Monday. Tesla's first quarter deliveries came in at just 358,000, well below estimates of 370,000. As a result, the stock briefly traded below $350 for the first time since September. 

The stock does have considerable support nearby, in the $343 area (black dotted line), and could bounce from that area. Tesla is trading below its declining 50-day moving average (blue) and its rising 200-day moving average (red). 

JPMorgan reiterated its underweight rating and lowered its price target for Tesla to $145. The investment bank sees the company’s capital expenditures rising to nearly $20 billion, consuming cash flows for 2026 and 2027 in the process.

I can't escape the impression that some on Wall Street still view Tesla primarily as an auto company. Viewed through that lens, some degree of pessimism may be justified.

However, if you view Tesla primarily as an AI and robotics company, then a decline to $145 seems highly unlikely. If the stock falls due to this perception gap, I’d consider it a buying opportunity. 

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At the time of publication, Ponsi was long NVDA, TSLA and NFLX.