TSLA wave ((iv)) bounce underway, more downside ahead

Tesla (TSLA) remains under pressure after turning lower against the 413.23 high on the 1-hour timeframe. Since that peak, the stock has completed a five-wave impulse decline, which we are labeling as wave ((iii)), ending at 304.28. TSLA has now turned higher, suggesting that wave ((iv)) is in progress as a corrective bounce. In the near term, we may see some additional upside as wave ((iv)) develops. However, the current bounce is expected to remain corrective in nature. Once it completes, we expect TSLA to turn lower again and resume the downside sequence. The next decline should complete a higher-degree red wave 3 and further confirm the broader bearish structure.

The 4-hour chart also supports this view. TSLA has been declining from the 453.35 peak, with the recent price action fitting into an impulsive structure. The current wave ((iv)) recovery should offer only a temporary reprieve before the stock resumes lower.

On the bigger timeframe, our bias remains to the downside. We expect it to eventually reach the 290–189 price range as it completes the larger pullback from the 498.83 peak. In the next 24 hours, it may continue higher within wave ((iv)), but we expect the recovery to remain limited below 413.23. After the bounce completes, the stock should turn lower again, keeping the bearish trend intact.

TSLA 45 Min. Elliott Wave Chart

TSLA Elliott Wave Video: