Dan Nathan Flips Bullish on Tesla Stock: Technicals, Sentiment, and EV Credits

Technical and Sentiment Shift on Tesla

• 📈 Tesla's stock is experiencing its best day since April, showing a significant technical and sentiment shift.
• 💡 The trader notes that both bulls and bears seem to agree that the EV business is currently struggling, but consensus for Q3 deliveries might be low.
• 🎯 The stock appears to be a beneficiary of a rotation within the MAG7 names, holding its 200-day moving average and building a base of higher lows.

Impact of EV Tax Credits

• 💰 The approaching expiration of the $7,500 EV tax credit at the end of the month is seen as a potential tailwind for Tesla.
• 🚀 This credit's expiration could lead to a pull-forward in demand, benefiting the stock as it approaches quarter-end reporting.

Historical Performance and Seasonality

• 📊 Historically, November and December are strong months for Tesla, and the EV credits could provide an additional tailwind.
• ⚠️ While September is typically a weaker month, the expiring EV credits on September 30th might offer a boost.
• 🎯 The trader acknowledges a past successful call on Tesla two years prior, which saw a significant price increase.