Tesla Stock Price (NASDAQ: TSLA): Tesla Q1 results dissapoint, breaks key support level

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  • Tesla reports EPS of $0.93 versus a forecast of $0.79.
  • TSLA GAAP EPS is a lot lower at $0.39.
  • Tesla reports revenues of $10.39 billion, just ahead of estimates.

Update: Tesla reported Q1 earnings after the close on Monday – which, despite beating analyst expectations, resulted in TSLA falling in after-hours trading. Investors were disappointed as a large proportion of revenue came from regulatory environmental credits and sales of Bitcoin. Tesla also failed to increase its guidance for the year ahead.

Technically, Tesla broke the 9-day moving average support during after-hours trading as short-term technicals turn bearish.

Tesla stock forecast

Looking firstly at the weekly chart, we can see the strong uptrend in place – seemingly in place since forever with Tesla. We can also see clearly the breakout area from back in November 2020. This will be the first target for bears if they gain control of Tesla's price. Along the way, support will need to be broken from the trend line at $655. 

Zooming down to the daily chart, we can clearly see the breakout range and the long period of the first consolidation phase in Tesla stock. This lasted from late August to mid-November. The longer the consolidation phase, the greater the breakout. Tesla stock produced a parabolic move, nearly doubling in price in a matter of months.

The good news for bulls is that the sell-off experienced in March stopped short of re-entering this range. From the March lows, Tesla has put in a classic uptrend of higher lows, eventually breaking above $715 resistance. 

Now Tesla stock has recaptured the short-term bullish 9-day moving average and has broken out of the second consolidation phase. Tesla is using support from the 21 and 50-day moving averages also. We can see how well TSLA has used the 9-day moving average as support earlier in the parabolic breakout from the first consolidation.

A break of the downtrend resistance at $763 should lead to a test higher with interim resistance at $780.52 the recent high and low from January 29. A break here should see a test of the ultimate target of the all-time high of $900.40. The MACD has confirmed the bullish engulfing candle on March 30.

At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor. 

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page. 

Errors and omissions excepted.

  • Tesla reports EPS of $0.93 versus a forecast of $0.79.
  • TSLA GAAP EPS is a lot lower at $0.39.
  • Tesla reports revenues of $10.39 billion, just ahead of estimates.

Update: Tesla reported Q1 earnings after the close on Monday – which, despite beating analyst expectations, resulted in TSLA falling in after-hours trading. Investors were disappointed as a large proportion of revenue came from regulatory environmental credits and sales of Bitcoin. Tesla also failed to increase its guidance for the year ahead.

Technically, Tesla broke the 9-day moving average support during after-hours trading as short-term technicals turn bearish.

Tesla stock forecast

Looking firstly at the weekly chart, we can see the strong uptrend in place – seemingly in place since forever with Tesla. We can also see clearly the breakout area from back in November 2020. This will be the first target for bears if they gain control of Tesla's price. Along the way, support will need to be broken from the trend line at $655. 

Zooming down to the daily chart, we can clearly see the breakout range and the long period of the first consolidation phase in Tesla stock. This lasted from late August to mid-November. The longer the consolidation phase, the greater the breakout. Tesla stock produced a parabolic move, nearly doubling in price in a matter of months.

The good news for bulls is that the sell-off experienced in March stopped short of re-entering this range. From the March lows, Tesla has put in a classic uptrend of higher lows, eventually breaking above $715 resistance. 

Now Tesla stock has recaptured the short-term bullish 9-day moving average and has broken out of the second consolidation phase. Tesla is using support from the 21 and 50-day moving averages also. We can see how well TSLA has used the 9-day moving average as support earlier in the parabolic breakout from the first consolidation.

A break of the downtrend resistance at $763 should lead to a test higher with interim resistance at $780.52 the recent high and low from January 29. A break here should see a test of the ultimate target of the all-time high of $900.40. The MACD has confirmed the bullish engulfing candle on March 30.

At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor. 

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page. 

Errors and omissions excepted.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


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