Shares of auto-giant Tesla Inc (NASDAQ: TSLA) popped more than 3.5% on Aug. 6, snapping a mini losing streak and reigniting hopes that a bullish breakout is just around the corner. The stock has continued to trade within a tightening pennant pattern for the past few weeks. Wednesday's move adds more tension to what's becoming one of the more interesting technical setups among the mega-cap stocks.
It's a classic inflection point. On one hand, the bulls are confident that Tesla's recent earnings, improving margins, and product roadmap will be enough to push shares higher again. However, the bears have plenty of ammunition of their own; ongoing concerns around free cash flow, brand damage, and now even legal risks.
