What’s Happening with Tesla stock? Will $TSLA hold Its $160 support?
After experiencing intense selling pressure for the last few months, shares of the world’s leading EV maker Tesla (NASDAQ: TSLA) started the new quarter on a weak note. The stock price tumbled by more than 6% on Tuesday. The drop comes after Tesla’s deliveries fell short of Wall Street expectations in the first quarter of 2024. The automaker delivered 386,810 cars in the first quarter of the year. That’s far below expectations of around 430,000. Tesla’s Q1 figure is the first annual Q1 decline in deliveries since 2020.
“Decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin,” Tesla said.
Tesla is stepping up its efforts to enter India
Meanwhile, Tesla stock closed slightly higher on Thursday in response to news that the EV makers plan to deploy a team from the United States to India by late April to investigate potential locations for a $2 billion to $3 billion electric vehicle plant. Tesla’s exploration of a new manufacturing site in India implies a long-term commitment to the region and the potential for localized production benefits. Tesla has already begun production of right-hand drive cars at its plant in Germany for export to India. Recently India lowered import taxes on certain EVs produced by automakers that commit to invest at least $500 million.
$TSLA technical forecast: Downside pressure persists
Technically, the overall momentum looks like we will continue the bearish consolidation further. In my last analysis of Tesla stock, I mentioned the significance of the $160 support level. Therefore, on the downside, $160 (the trendline support) remains the first key support. If it breaks below this level, it will head towards the next support level, located near 152.37 (52-week low) then $150, which is the key support area for the next few weeks. In other words, $150 is an area where we could see a lot of interest in the market, so we will have to pay close attention to it. If the stock breaks below the $150 level, it potentially opens a huge move, perhaps dropping down to the $130 level.
On the flip side, any recent rebound seems like a fakeout, meaning the stock will likely have a bearish breakout soon. However, in the short-term, if bulls initiate a bounce from near the trendline again that opens the doors to $185, a further advance brings $205/06 (Feb high) into the picture. The bearish trend analysis will only be invalidated if the monthly candle closes above $205.
