Tesla Inc. (TSLA) shares have seen a rebound over the past two trading sessions, recovering from a significant five-day losing streak that saw the stock drop 18%. The stock reached an all-time high in mid-December, fueled by optimism surrounding CEO Elon Musk’s strong relationship with President-elect Donald Trump, which investors believed could benefit the electric vehicle (EV) maker.
The surge in Tesla’s stock price earlier this year saw gains exceeding 60%, with much of the growth occurring after the November 5 election. However, after the Christmas break, Tesla shares began to slide, mirroring a broader market downturn. On the first trading day of 2025, the stock fell by 6%, driven by weaker-than-expected fourth-quarter vehicle deliveries. The following day, however, shares rebounded by 8%, boosted by positive news that Tesla’s sales in China reached a record high in 2024. This development has sparked renewed confidence in the company’s potential in the world’s largest car market, despite fierce competition from local EV manufacturers.
As of Monday, Tesla shares closed at $411.05, marking a slight increase of 0.2%. This level remains 16% below the stock’s peak of $490.85, which was set on December 18.
Strong Uptrend Maintains Momentum
Despite recent setbacks, Tesla’s long-term uptrend remains intact. Since the early November breakout following the U.S. election, Tesla shares have demonstrated significant growth, bolstered by bullish price momentum. The relative strength index (RSI) is still in overbought territory, suggesting that the stock’s upward trajectory is strong, although caution is advised due to potential short-term volatility.
Technical Analysis: Key Price Levels
To gauge the future trajectory of Tesla’s stock, technical analysis suggests that the current bullish trend could continue, with important price levels to monitor. A key tool for forecasting price movement is the bars pattern analysis, which looks at past price trends to project future behavior.
When applying this analysis to Tesla’s chart, the price bars from October 2019 to February 2020 are repositioned following the November breakout, predicting a potential price target of $745. This forecast assumes the stock will continue its current uptrend until early March, aligning with previous price patterns that followed a 30% breakout from an ascending triangle in late 2019.
Monitoring Support Levels
If Tesla’s stock continues to experience downward pressure, investors should closely monitor the $370 level for potential support. This is a key zone on the chart where the stock could find stability, as it corresponds to peaks seen in early November 2021. A break below this level could signal a further decline, with the next support target around $300. This area is significant as it aligns with a trendline formed by peaks in July and August of the previous year, as well as a psychological round number that often attracts buying interest.
As the stock approaches these critical levels, investors will need to weigh the possibility of a short-term pullback against the longer-term uptrend, which remains largely intact for Tesla.
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