Today’s TSLA chart shows a 6% rise during yesterday’s trading, pushing the stock price above $209 per share. This is the highest it has been since 24 January this year.
The price increase was driven by positive sentiment around the release of second-quarter car sales data. While a decline in sales is expected, it may not be as significant as initially feared.
Bloomberg-surveyed analysts estimate that Tesla will report sales of approximately 440,000 electric vehicles for the second quarter, which is 5.8% lower than a year ago.
Factors influencing the sales decline include:
→ Suspected arson at Tesla’s Berlin factory;
→ Supply chain disruptions due to attacks in the Red Sea;
→ A 10% workforce reduction announced by Musk in April.
However, competition and Tesla’s aging model lineup are also significant factors. Can TSLA’s price sustain its current high?
Technical analysis of TSLA’s chart today shows:
→ The price remains within the descending channel (marked in red) but has broken upward through its median (indicated by an arrow), indicating demand;
→ On 5 April, we noted that TSLA’s price could rise to the psychological level of $150 per share. At that time, the market was oversold, with the price below the lower boundary of the descending channel. Since then, the price has followed an upward trajectory (shown in blue);
→ The price is now above the psychological level of $200 per share.
Regardless of the report’s details, for bulls, maintaining the upper half of the ascending channel and staying above $200 per share is crucial. This would enhance their confidence ahead of Tesla’s second-quarter report, scheduled for 17 July.
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The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.
