- 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, 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.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or 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. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.