Elon Musk’s electric vehicle (EV) maker, Tesla (NASDAQ: TSLA) has been in the news a lot in 2024 and mostly for all the wrong reasons.
Tesla’s stock has been in trouble throughout the year amidst a general slowdown in the industry and dwindling sales which saw the firm report the lowest delivery figures in the first quarter since 2022.
There has, however, also been some silver lining – or at least hypothetical silver lining – as TSLA shares saw a significant jump during the latest full trading day, Monday, April 8 as Musk announced an unveiling of a ‘Robotaxi” on August 8 in an X post late last Friday.
Picks for you
Technical analysis shows Tesla stock has a chance to break out
The long decline and recent, somewhat better performance have led Tesla stock to a position from which it has a shot at breaking out and reversing at least some of its losses.
Technical analysis (TA) based on the state of TSLA shares near the latest close demonstrates they have now formed a falling wedge pattern – a chart pattern that often flashes before a stock reverses its current trend.
Tesla stock might also receive another boon to help it enter into an uptrend should the upcoming CPI print – scheduled for Wednesday, April 10 – demonstrate that inflation has again hit the brakes.
Given that price uncertainty and fears of a possible renewed inflation crisis have been some of the factors that have thrown a wrench into the EV industry’s growth, a better-than-expected CPI could significantly boost Tesla’s sales and, by extension, its stock market performance.
On the other hand, the electric vehicle industry is faced with other challenges – such as the wide fears that being an early EV adopter would only lead to purchasing an inferior product at a premium compared to what may be available in just a few months – it remains an open question of how big an impact inflation figures can ultimately have.
The bear case is also bolstered by the fact that recent prints have shown a slow reheating of inflation meaning that Tesla shares might ultimately have to rely solely on the bullish chart pattern to facilitate a reversal.
Tesla stock price chart
Whatever the FED and the future may bring, the fact remains that Tesla has suffered a stock market bloodbath since the start of 2024. Year-to-date, the shares of Elon Musk’s EV maker have dropped 30.37% from approximately $248.42 on January 2 to their latest closing price of $172.98 on April 8.
The last 30 days have slowed the decline, though at the cost of significant volatility and TSLA stock is 2.69% in the red on the monthly chart. The last trading day, however, was positive and saw the shares climb 4.90% possibly helping bring the downtrend to a complete halt.
Finally, Tesla price today stands at $173.55 having risen another 0.39% in the extended session by press time.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
