Earlier this month, the stock gapped up further on very high volume, but this time notably taking place on the heels of an already-impressive 35% move. And more recently shares have again gapped up on high volume. High-volume price gaps occurring well within a strong advance often suggest a near-term top is imminent. Note the parabolic chart pattern, the exponential rise in a fairly short time frame (150% rise in less than two months!). The recent buying looks to be climatic and emotion-driven.
This is not to say the stock is doomed or will fall off a cliff any time soon. In fact, such stellar performers typically do not die sudden deaths, but if/when they do correct it's more of a protracted, eventual decline. One reason for this is when high-flyers crack for the first time, many investors believe it's finally their time to get in, that they've been given a golden opportunity to enter before the next big move. Such buying tends to support the shares at the initial break, so again my point is these headline-grabbing stocks do not typically reverse and give up all their gains in a heartbeat. It's also too soon to tell if TSLA will even crack or meaningfully correct at this point.
Given what I've written, the stock is obviously not at a good entry point. However, for those already holding the stock, the prudent step at this point would be to establish a trailing stop-loss threshold, allowing price to dictate an exit. In the chart above, I included a few shorter-term moving averages. It appears as if the 10-day MA would offer the most conservative stop-loss limit at approximately $94, followed by the 15- and 20-day moving averages.
Needless to say, even if you do get stopped out, one can always reassess and re-enter the stock at a later date. And who knows, maybe by then the company will have positive annual earnings....