Tesla Enters Its Most Bullish Window: This Seasonal Trade Delivered 24% Average Gain Over 10 Years
Tesla Inc. has entered its strongest historical performance window, with a strategy of buying shares on May 21 and selling on July 18 yielding an average return of 24.3% over the past decade. This seasonal trade has a perfect 10-for-10 track record, even excluding the extraordinary gains of 2020. Bank of America’s Paul Ciana notes strong momentum and potential for further upside, suggesting a bullish outlook for Tesla as it trades below its all-time high of $488.
Tesla Inc. TSLA just entered its strongest historical performance window of the year.
A strategy of buying Tesla shares on May 21 and selling on July 18 — or the nearest trading days — has delivered an average return of 24.3% over the past decade, with a perfect 10-for-10 track record of positive outcomes.
Tesla Is Shifting Into High Gear
According to data from Seasonax, the period between late May and late July is historically the most lucrative time to hold Tesla stock, with an average gain of 24.3% over the past 10 years.
Even more remarkably, this trade has been profitable in every year of the past decade, with a 100% win rate.
Even when excluding the extraordinary 98.5% gain in 2020, the average return remains an impressive 18%.
While Tesla's early summer trade has delivered consistent gains over the past decade, not every year was a blockbuster.
The lowest gain occurred in 2016, when shares rose just 4.6%, and the second weakest performance came in 2017, with a 5.8% return.
Notably, intra-period drawdowns have been rather modest with only two occasions showing double-digit temporary drops.
In 2016, Tesla saw a temporary decline of 10.7% between May 23 and July 18, while 2019 witnessed a 12.7% intraperiod drop before recovering.
Despite these pullbacks, Tesla always closed the window in positive territory, highlighting the strength and resilience of this seasonal pattern even in choppier conditions.
Technical Analysis Points To Further Upside
Bank of America technical strategist Paul Ciana turned bullish on Tesla, highlighting strong momentum and a potential technical breakout:
"TSLA bottomed in the $200s with a bullish breakaway gap up into the $300s. Momentum and relative trend favor upside into the $400s. The triangle pattern still measures upwards of $700," Ciana said in a note shared Wednesday.
With Tesla currently trading well below its all-time high of $488, the technical setup and seasonal pattern may align to offer traders a high-conviction window.
And this time, Elon Musk is back aboard.
Read now:
- Chipmakers Enter Bullish Seasonal Window: 5 Stocks That Could Outperform
Image created using artificial intelligence via Midjourney.
