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Tesla is going to $300: Technician

This popular stock is going to $300: Technician
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Tesla shares are already up more than 21 percent year-to-date, but according to one technician's chart work, the stock could soon go into hyperdrive.

"Tesla stock has held up like a rock against the backdrop of this uptick in macro volatility and I think it has what it takes to get all the way up to $300 a share," technical analyst Rich Ross said Wednesday on CNBC's "Trading Nation."

Shares of the electric automaker have outperformed the broader market by leaps and bounds over the past two years, up 132 percent while the S&P 500 and Nasdaq Composite are up a respective 29 and 47 percent in the same period.

"The first thing you see when you break down the chart [of Tesla] is a big downtrend from last September to into May of 2015," said Ross, head of technical analysis at Evercore ISI. "But then, importantly, the stock establishes a very nice base of support and we see a breakout above the neckline above that base."

Ross noted that the breakout established a fresh new uptrend "almost in a straight line" up. "Even as Greece fears and Puerto Rico has weighed on the broader market, Tesla has held up and is testing its old high for the year," he said. "I think that gets us all the way to $300, which is a new high for the stock." That's a 10.5 percent move from current levels.

"I'd be a buyer of Tesla in here. I think it's a great name to own," added Ross.

Ross' price target is considerably higher than that of Wall Street. According to FactSet, of the 20 analysts that cover the stock, the average price target is $270.32 with a rating of overweight.

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