Tesla Stock Bouncing Again on Model 3 Buzz

TSLA shares are following Monday's slide with a huge move higher today

by Josh Selway

Published on Dec 26, 2018 at 3:14 PM

Stocks are rallying today after their Christmas Eve sell-off, with the Dow last seen up almost 600 points. Three stocks in the news today are Elon Musk's Tesla Inc (NASDAQ:TSLA), e-commerce concern JD.com, Inc. (NASDAQ:JD), and leisure name Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH). Here's what's moving shares of TSLA, JD, and NCLH today.

Wedbush Sees Model 3 Tailwinds Lifting TSLA

TSLA stock is bouncing back from its two-month low of $295.20 from Monday, trading 5.9% higher at $312.83, thanks to some positive buzz out of Wedbush. The brokerage firm just released a note that predicted strong demand for the automaker's Model 3 in 2019, saying the company has "turned the corner" in production of the vehicle. As such, Tesla's financials should see notable improvement, the note went on to suggest, potentially putting to rest the long-running fear of another capital raise from the company.

Wedbush has an "outperform" rating on TSLA shares and a $440 price target. The majority of analysts are actually bearish on the equity, with 11 of 19 in coverage handing out "hold" or worse recommendations.

JD Shares Volatile Again

JD shares are in the headlines for a third straight session, this time because the China-based company just announced a $1 billion buyback plan. This follows news that CEO Richard Liu will not be charged after being accused of rape. The stock was last seen up 5.1% at $20.76, continuing its three-day stretch of volatile trading. Longer term, JD.com remains stuck in a sharp downtrend, hitting an all-time low of $19.21 on Nov. 23.

In the meantime, there's heavy trading taking place at the weekly 12/28 21-strike call. Trade-Alert notes that new positions are opening here, and those buying the calls would be betting on a rebound back above $21 by the close this Friday, Dec. 28, when the weeklies expire.

NCLH Shares Vulnerable to Bear Notes After New Low

NCLH has mustered a 3% gain today to trade at $40.77, even after Wedbush removed the equity from its best ideas list. The stock had been getting hammered in recent weeks, falling from a Dec. 18 close at $46.77 to the two-year low of $39.36 it tapped earlier today. This technical weakness could prompt more bear notes on Norwegian Cruise Line, since 10 of the 12 brokerage firms in coverage have "strong buy" recommendations.


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