We present a mid-term investment review of the shares of electric car manufacturer Tesla Inc.

Since mid-summer, the global fundamental background around Tesla Inc. has begun to change smoothly from negative to positive. At the moment, the pressure on the company has significantly eased, which creates prospects for continued growth of the shares. Two key points remain in the focus of investors' attention: litigation and production levels in the Chinese market.

The lawsuits of individuals against Tesla Inc. regarding the incorrect operation of the autopilot on the best-selling model of the Tesla Model 3 car are being most actively discussed now. So, in one of the statements it is claimed that the autopilot of the car spontaneously turned the steering wheel at high speed, which led to the death of the driver and injuries to passengers. The second case has been dragging on since 2019, and there the plaintiff claims that the autopilot did not react to the danger on the road, which also led to casualties. The company itself denies all charges and believes that the drivers themselves made mistakes, but these trials carry a much more serious burden, since they are associated with the first deaths and relate to autopilot, to which there have been a lot of complaints since the release of the Model 3 on the market.

In addition, investors' attention is now focused on macroeconomic data from China, where a significant decline in consumer activity was registered in Q2. Nevertheless, industry observers report that the Chinese division of Tesla Inc. has every chance to demonstrate record results in August. At least, it is claimed that over the past week the company has reached 13,900K new insurance registrations, and in a month their number may exceed 39,400K. During the second week of August, 14,000K cars were registered, which is 9.38% higher than 12,800K cars sold in the first week of the month. The most popular is the Model Y, not the Model 3, as it was before. The company attributes this to the expectations of the launch of the updated Model 3 Project Highland.

In addition to fundamental factors, the technical picture on the asset price chart signals in favor of a possible continuation of the growth of the company's quotes in the near future. On the global weekly chart, the price is ready to continue growing within the 5th wave of the trend inside the local ascending channel with dynamic boundaries of 320.00-230.00.

The main factors point to the imminent achievement of the maximum of the third wave in the area of 280.00 and the subsequent growth with the ultimate target in the area of the maximum of autumn 2021 at the level of 385.00. Key levels can be seen on the daily timeframe.

As can be seen on the price chart, local growth has already begun and consolidation above the local minimum at around 240.00 confirms this. Now, for full confidence in the continuation of growth, the price needs to consolidate above the key high of mid-July at the level of 270.00. In the area of 207.00 there is a zone of cancellation of the buy signal. If the resistance level is not taken and the price begins a downward correction after reaching this mark, the upward scenario will either be canceled or significantly delayed in time, and open buy positions should be liquidated. A target zone is located in the area of 385.00; if it is reached, profit should be taken on open long positions.

In more detail, trade entry levels can be evaluated on a four-hour timeframe.

The entry level for purchase transactions is located near the local minimum of July 15, at around 270.00, and a buy signal can be received in the coming days. The final breakout of the wave 3 maximum will be realized, after which there will be no significant resistances on the price's path to the target mark of 385.00, and positions can be realized.

Given the nature of the underlying fundamental factors, the price will move towards the target mark gradually, and in this case it will be necessary to take into account the average daily volatility of the trading instrument over the past month, which has increased significantly and now stands at 925 points. Thus, the price movement to the target zone of 385.00 in this case may take about 57 trading sessions.