- Summary:
- Lat week's approval of Elon Musk's pay deal by shareholders was reflected in Mondays Tesla share price green candlestick. But that's not all.
Tesla share price was down in Tuesday’s premarket session, as investors cooled down their buying appetite that saw it gain 5.3 percent in Monday’s session. TSLA traded at 187.10, having dropped 0.1 percent of its value at the time of writing, with investors looking for motivation beyond last week’s approval of Elon Musk’s $56 billion pay deal.
Much as the win by Musk is considered good for the company’s growth prospects, investors still have to wait for a judicial decision on the annulment of the previous case. While the yes vote was an overwhelming 72 percent, the courts still have the final say on whether Musk will take home his hefty paycheck. An approval by the courts would certainly inject new impetus into the company.
That said, nothing has changed fundamentally in the company’s market performance. The company still has to face the reality of tightening competition and declining sales in China, whether Musk gets his pay or not. Tesla’s sales improved in May, rising by 16.7 percent from April’s figure to 72,573 units, but still falling short of the 2023 figure by 6.7 percent.
Investors will likely start looking beyond Musk’s pay and start focusing on the sales data and AI progress. As things stand, many investors are reserved to the high likelihood that sales will plummet this year. Therefore, the next front is in AI integration, whereby the company’s Robotaxi venture will be the point of focus. Therefore, some investors are likely to start positioning themselves for the big announcement set for August 8, which could inject fresh momentum into the TSLA price.
Technical analysis
The momentum on the Tesla share price signals control by the sellers, and the downside will likely prevail if the Tesla share price moves below 184.61. With that momentum, the first support could be established at 182.04. A break below that mark will potentially build the momentum to test 180.00 in extension. On the other hand, the buyers will likely take control if they keep the price above 184.61. The momentum will likely meet the next resistance at 187.16, beyond which the downside narrative will be invalid, and TSLA could go on to test 189.54 in extension.
