• Tesla shares' recent rally stalls at $625 resistance level.
  • TSLA reportedly recalls 5,974 Model 3 and Model Y cars in US.
  • TSLA boss Elon Musk facing SEC warnings over tweets.

Update: Tesla shares are struggling for momentum on Wednesday with the $625 resistance proving too much so far but it is early yet with plenty of the session remaining. All retail focus appears to be staying with AMC so TSLA shares are having to make do with the institutional players. The 9-day moving average, key to the short-term momentum, is currently being tested just under $614. 

It is never dull around these parts with AMC and Dogecoin on the move and Elon Musk's tweeting keeping things real. On that note, the SEC pipes up and says that Mr. Musk has twice violated a court order from 2020 in relation to tweeting. According to the Wall Street Journal, Elon Musk's tweets in relation to Tesla must first be approved by Tesla lawyers. The furor originated from 2018 when Musk tweeted "am considering taking Tesla private". It is reported that Mr. Musk paid $20 million to the SEC, and Tesla also paid $20 million. As part of the SEC settlement, Elon Musk needs to get certain messages pre-approved by Tesla lawyers before releasing them on social media. Separately, it is being reported by Reuters on Wednesday morning that Tesla is to recall 5,974 Model 3 and Y cars due to issues over brake caliper bolts, which may cause a loss of tire pressure. Electrek also reports that Tesla is to use LG's NCMA nickel batteries. The new battery type reportedly allows for increased energy density and reduced reliance on cobalt. This amounts to plenty for both sides of the bull and bear case to bite into on Wednesday. 

Tesla's share price has been bouncing from lows near the strong $539 support but has stalled at the $625 resistance level. This $625 is the sharp move lower from May 10, which was retested on May 11. Tesla shares are also struggling to get above the 21-day moving average.

Tesla stock forecast

Clearly, there is a lot of news flow in relation to the shares to digest, but the chart is looking sluggish for now as Tesla stalls at the $625 level. Getting cleanly through this level should see a test of the $667 resistance, which would then end the longer-term bearish trend. Tesla currently has some strong support from the 9 and 200-day moving averages, but if these fail the $539 level would look to be tested. There is nothing too strong screaming at us from the chart. $539 would be a good level to try a long position from,  but a break of $667 on volume would also be a bullish move. The 9 and 21-day moving averages are showing just how flat Tesla currently is as both more or less flatline. 

 

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