Tesla share price rose for the twelfth successive session on Thursday, crossing the $270 mark for the first time since September 2023. TSLA price declined slightly to trade at $269 at the time of writing, which was still a 2.5 percent gain on the intraday session. With its latest gain, the stock’s weekly gains stand at 6.8 percent, while its monthly gains exceed 35 percent- the highest in 18 months. The bullish momentum is unlikely to cool down as recent forecast-beating sales figures and the forthcoming quarterly earnings report provide propulsion fuel.
The company’s recovery from its slump in April lows has been nothing short of spectacular. The share price has risen by 92 percent from that position in just ten weeks, underlining the bullish rally around it. With this, Tesla is within touching distance of the “Magnificent Seven” stocks, and a return to that club could help strengthen the sentiment around the company.
Tesla has fought off a shrinking market share in the EV market, with Chinese makers particularly exerting strong pressure. The Elon Musk-led company underwent a series of setbacks in the first half of the year, including layoffs, recalls and uncertainty surrounding the CEO’s $56 billion pay package. However, with those hurdles behind it, Tesla is now focusing on proving that it is more than a car manufacturer. This will come to the fore on August 8 when the company will unveil its robotaxi milestones. In the intervening period, the earnings release scheduled for July 23 will provide propulsion for TSLA.
The momentum on Tesla share price signals that the buyers are currently in control. The upside will likely continue if the price stays above the 265.06 pivot. That could result in the first resistance being encountered at 271.18, but a break above that mark could strengthen the upward momentum to take on the next barrier at 275.48. Conversely, the sellers will likely take control if the price breaks below 265.06. In that case, the first support could come at 245.70, and a break below that mark will invalidate the upside narrative and potentially extend the downside to test 256.20.
This post was last modified on Jul 11, 2024, 16:11 BST 16:11