TSLA Analysis: Price Returns Above $170, But for How Long?

Following a year-low on March 14, TSLA shares have rebounded above the $170 mark, spurred by Tesla’s decision to raise prices for electric vehicles in the US and Europe.

Despite this uptick, the TSLA stock market remains under pressure:

  • TSLA’s performance lags behind the S&P 500 index;
  • A downward channel has formed in the price trajectory (highlighted in red);
  • Goldman Sachs analysts revised their forecast for Tesla shares downward to $190 from $220 for the next 12 months, citing production and sales challenges.

Yahoo notes investor dissatisfaction with Musk’s leadership. A turnaround in Tesla’s share price could hinge on the appointment of a “real CEO” or Musk altering his stance and actively promoting the brand.

What’s the market outlook?

Bullish arguments:

→ The price hovers near a crucial support zone, delineated by the 2023 pattern: a bullish gap that has been effectively tested;

→ a drop in the TSLA price below the lower boundary of the downward channel signals short-term oversold conditions;

→ on March 15, Fortune reported that Cathie Wood’s fund purchased $35 million of TSLA stock.

Bearish arguments:

→ the bearish gap from early January acts as resistance;

→ resistance may also be encountered at the psychological level of $200 and the median line of the descending channel.

Meanwhile, Barron’s warns that the upcoming earnings season poses the greatest risk for Tesla shares. Estimates suggest Tesla will report around 480,000 electric vehicle deliveries in Q1 2024, but recent projections indicate a figure closer to 430,000 units.

Actual figures falling below expectations could significantly impact TSLA share prices, potentially leading to further movement within the descending channel and breaching the support area. The news report is scheduled for April 17.

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