TSLA tends to outperform in December
Tesla Inc (NASDAQ:TSLA) stock hit a new record high of $493.83 today, helped in part by headlines surrounding a major competitor. Alphabet's (GOOGL) self-driving unit, Waymo, saw several vehicles stall during San Francisco's power outage, causing traffic disruptions but luckily no injuries. Tesla CEO Elon Musk addressed the incident on X, posting video footage and stating that "Tesla Robotaxis were unaffected by the SF power outage."
Looking back, Tesla stock has tended to outperform in December, historically, finishing the month higher in seven of the past 10 years. Additional record highs may be in the cards, as today's peak 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 when Tesla stock traded within 2% of its 52-week high, while its Schaeffer’s Volatility Index (SVI) sat in the 20th percentile, or lower, of its annual range -- as is the case with the security’s current SVI of 46%, which sits low in the 6th percentile of its annual range.
Tesla stock was higher a month later after both of these signals, averaging a large 17% return. From its current perch, a move of similar magnitude would put the equity at $577.78.
