Tesla Stock Trade Plan – March 2025
EDITED and moves stop since there was a slight error previously. 1 buy filled. Trade still relevant.
Tesla stock (NASDAQ: TSLA) is trading at extended levels, presenting a high-probability day trade opportunity for long buyers. This setup follows a structured, layered buying approach to capitalize on a potential rebound while maintaining a strong risk-to-reward ratio of 5.7:1.
TSLA Long Trade Strategy
| Buy Order # | Entry Price ($) | Shares to Buy | Capital Allocated ($) | % of Total Position |
|---|---|---|---|---|
| 1st Buy | $262.20 | 100 | $26,220 | 16.67% |
| 2nd Buy | $260.46 | 200 | $52,092 | 33.33% |
| 3rd Buy | $257.80 | 300 | $77,340 | 50.00% |
🔹 Weighted Average Entry Price: $259.42
🔹 Stop Loss Level: $257.60 (-0.70%)
🔹 Take Profit Target: $269.80 (+4.00%)
🔹 Total Position Size (if fully filled): 600 shares ($155,652)
Risk-Reward Calculation
| Metric | Value |
|---|---|
| Entry Price for Long | $259.42 |
| Stop Loss (New Level) | $257.60 (-0.70%) |
| Take Profit Target | $269.80 (+4.00%) |
| Max Loss (Full Position) | -$1.82 per share (-$1,089.56 total) |
| Potential Profit (Full Position) | $10.38 per share (+$6,226.08 total) |
| Reward-to-Risk Ratio | 5.71:1 |
Why This Trade Setup Works
✅ Strategic Scaling for Optimal Entry
- Buying in three stages allows for cost efficiency and avoids early stop-outs.
- Scaling method (1x, 2x, 3x) ensures higher position size at lower prices.
✅ Improved Stop Loss Placement
- Adjusted below the 3rd buy ($257.80) to reduce the risk of getting stopped out prematurely.
- -0.70% downside vs. +4.00% potential gain keeps risk manageable.
✅ High-Probability Reversal Zone
- Tesla stock is near key support levels, making a rebound more likely.
- Order flow confirmation required (buyers must step in at these levels).
Tesla Stock Price Prediction: Will TSLA Hit $269.80?
For this trade to succeed, Tesla stock must:
✅ Hold above the $257.60 stop-loss level.
✅ Show bullish order flow signals (e.g., rising buy volume, positive delta).
✅ Avoid a breakdown below $257.60, which would weaken the bullish case.
🔹 If momentum supports the trade, TSLA could retest $269.80, making this a high-probability setup for quick gains.
Final Thoughts: Should You Trade Tesla Stock Today?
This Tesla stock trade idea provides a structured, data-driven approach with a clear risk-to-reward profile. If TSLA finds support at these levels, traders can capitalize on a potential bounce while keeping risk tightly managed. trade at your own risk.
