In This Article:
Key Takeaways
-
Tesla shares gained ground in extended trading on Wednesday as optimism over the automaker's self-driving outlook trumped fourth-quarter results that came in below Wall Street’s expectations.
-
The price looks sets to gap above the top trendline of a flag pattern on Thursday in a move that could resume the stock’s upward momentum.
-
Bars pattern analysis, which takes the stock’s trending move from October to December and overlays it from the flag pattern’s lower trendline, projects a longer-term bullish target of around $790.
-
Investors should monitor major support levels on Tesla's chart around $360, $300, and $265.
Tesla (TSLA) shares gained ground in extended trading on Wednesday as optimism over the automaker's self-driving outlook trumped fourth-quarter results that came in below Wall Street’s expectations.
CEO Elon Musk told investors on the earnings conference call that the company’s full self-driving technology continues to make significant inroads. Among other developments, Musk said the company plans to start using the unsupervised version of the self-driving software with Tesla vehicles at the company's Austin, Texas factory starting in June, with a broader public release possible this year.
Tesla said it expects vehicle sales, which fell in 2024 for the first time, to return to growth this year. The company also said its plans for a more affordable model are still on track to enter production in the first half of the year, though no official announcement has been made about what the more affordable Tesla will look like or cost.
Tesla shares rose 4% to around $405 in after-hours trading, after falling more than 2% during the regular session. The stock has more than doubled over the past 12 months, with much of that gain coming since the early-November presidential election amid hopes that Musk’s close ties with President Donald Trump will directly benefit the automaker.
Below, we take a closer look at Tesla’s chart and apply technical analysis to identify crucial price levels worth watching out for.
Flag Pattern in Focus
Since hitting a record high last month, Tesla shares have consolidated within a flag, a bullish chart pattern that indicates a brief pause in the stock’s uptrend before another move higher. Indeed, the price looks sets to gap above the pattern’s upper trending on Thursday in a move that could resume the stock’s upward momentum.
Investors should also watch for an increase in trading volume, which has been in steady decline throughout the recent flag pattern.