Tesla (TSLA) Stock Price and Forecast: Is this a dead cat bounce?
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- Tesla stock rallies over 3% on Friday to $923.
- TSLA is still stuck in a downtrend for 2022.
- Tesla shares need to break above $945 to get some upside momentum.
Tesla (TSLA) rallied well on Friday to end the week solidly after some volatile swings. Meme stocks took a battering, and high growth names did not fare much better. Overall, it was a wild ride for the markets with hawkish moves from all the main central banks sending yields sharply higher. This sent growth stocks lower, but it was not just growth stocks. Facebook suffered the largest market cap loss in history following its earnings report, only for Amazon to do the exact opposite and have the greatest market cap gain in history after announcing positive results. Tesla, meanwhile, went along under the limelight, a first for the stock.
Tesla Stock News
The competition is steadily increasing in the electric vehicle space as it goes mainstream. Reports over the weekend suggest General Motors (GM) is pumping $6.6 billion into its Michigan EV plant to scale up production. Tesla has had the EV field to itself for many years, but now all of a sudden it is getting increasingly crowded. Bank of America recently noted that Tesla's market share could fall from over 60% to under 20% of the EV sector in the next three years. Electrek also reports that Volvo and Northvolt have poached Tesla's head of Gigfactory Berlin to lead their own factory in Sweden.
Tesla Stock Forecast
Tesla has so far bounced perfectly from the 200-day moving average. This is a key level, so expect some fighting between bulls and bears around here. For now it has held, but it remains a key support at $819. There is a small resistance at $845, which is the short-term pivot in our view. Overall, a classic downtrend remains in place: lower highs since December and now lower lows from last week at the 200-day moving average.
Tesla (TSLA) chart, daily
Like this article? Help us with some feedback by answering this survey:
- Tesla stock rallies over 3% on Friday to $923.
- TSLA is still stuck in a downtrend for 2022.
- Tesla shares need to break above $945 to get some upside momentum.
Tesla (TSLA) rallied well on Friday to end the week solidly after some volatile swings. Meme stocks took a battering, and high growth names did not fare much better. Overall, it was a wild ride for the markets with hawkish moves from all the main central banks sending yields sharply higher. This sent growth stocks lower, but it was not just growth stocks. Facebook suffered the largest market cap loss in history following its earnings report, only for Amazon to do the exact opposite and have the greatest market cap gain in history after announcing positive results. Tesla, meanwhile, went along under the limelight, a first for the stock.
Tesla Stock News
The competition is steadily increasing in the electric vehicle space as it goes mainstream. Reports over the weekend suggest General Motors (GM) is pumping $6.6 billion into its Michigan EV plant to scale up production. Tesla has had the EV field to itself for many years, but now all of a sudden it is getting increasingly crowded. Bank of America recently noted that Tesla's market share could fall from over 60% to under 20% of the EV sector in the next three years. Electrek also reports that Volvo and Northvolt have poached Tesla's head of Gigfactory Berlin to lead their own factory in Sweden.
Tesla Stock Forecast
Tesla has so far bounced perfectly from the 200-day moving average. This is a key level, so expect some fighting between bulls and bears around here. For now it has held, but it remains a key support at $819. There is a small resistance at $845, which is the short-term pivot in our view. Overall, a classic downtrend remains in place: lower highs since December and now lower lows from last week at the 200-day moving average.
Tesla (TSLA) chart, daily
Like this article? Help us with some feedback by answering this survey:
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.