Electric Cars Funded By Oil Sheiks

Tesla looks to be stabilizing this morning in the mid-$350s after this news story about CEO Elon Musk having some meat on the bones to his claim regarding "funding secured," specifically his  repeated and ongoing conversations with the Saudi Arabian sovereign wealth fund.

Putting to one side the irony of the situation, TSLA's chart is still rangebound over the last year as we discussed in a recent blog post. 

But to quickly update that analysis, the daily TSLA, below, would not be very conducive to the bear case if price continues to flag at the upper end of this range. Recall that the stock is still extremely heavily-shorted, considering we are talking about a firm with a $60 billion-plus market cap. 

Hence, bears must stay extra vigilant when price is back over the 200-day moving average, as it is now, and holding steady. 

Ultimately, though, bulls must sustain a move back over $390 to sustain a fresh leg higher. 

Elsewhere, bulls are turning in a solid performance early on considering how futures looked last night and the various calls for an imminent market correction--We still seem to be in a slower, summer tape for now.