Tesla (TSLA) shares surged to a new all-time high on Wednesday, marking a 5.9% increase to $424.77, the highest closing price since November 2021. The stock’s impressive rally, which has continued for six consecutive days, follows a substantial post-election boost driven by investor optimism.
Analysts are offering bullish assessments for the electric vehicle maker, with Goldman Sachs highlighting the potential of Tesla’s ventures into self-driving cars and robotics to benefit from the growing artificial intelligence (AI) boom. Additionally, Morgan Stanley analyst Adam Jonas identified Tesla as his “Top Pick,” further fueling investor confidence.
Since Election Day last month, Tesla’s stock has risen by approximately 70%, buoyed by speculation that CEO Elon Musk’s close ties to President-elect Donald Trump could benefit the company.
Technical Indicators Point to Continued Momentum
Tesla’s recent price surge follows a breakout from an ascending triangle pattern that began in early November. The relative strength index (RSI) has confirmed strong bullish momentum, registering above the 70 threshold. However, the RSI also suggests the stock could be entering overbought territory, raising the potential for short-term profit-taking.
As Tesla enters a phase of price discovery, technical analysts are forecasting a bullish price target for the stock, while also monitoring key support levels.
Bullish Price Target: $585.65
Using the “measured move” technique, a common method for forecasting price targets, analysts estimate a potential rise of 121% based on the ascending triangle pattern. This suggests a price target of $585.65, a level where investors might consider locking in profits.
Key Support Levels to Watch
In the event of a pullback, investors should monitor the $380 level, approximately 11% below Wednesday’s close. This price point aligns with multiple peaks observed between November 2021 and April 2022, making it a critical support level. Should this level fail to hold, Tesla’s stock could retreat toward the $300 range, near a psychological support level and a trendline connecting highs from July 2022 to July 2023.
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