- Summary:
- Tesla stock price has been on an extended decline in recent days, putting pressure on Wednesday's earnings release.
Tesla stock price extended its decline on Monday, as it went for $403 in the first hour of trading, after going down by 0.7% at the time of writing. The stock’s momentum has been on the decline in recent days, with the Trump-driven rally cooling down. The EV maker will announce its earnings on Wednesday, and that has injected fresh volatility in the market.
Strong Earnings to Rescue Tesla Stock Price
Away from the EV market, Tesla’s ties to the tech industry have also contributed to its decline. Stock markets started the week on a backfooting as news of disruption in the AI segment by Chinese startup, DeepSeek. Tesla’s autonomous driving technology is dependant on AI, and the company has a substantial capex on that front.
Tesla (NASDAQ: TSLA) launched a new vehicle, the Model Y, last week, with its price tag at approximately $60,000. The news did not strike the right chord among investors, most of whom have been hoping that the company will prioritise cheaper models to compete favourably against Chinese EVs.
These recent developments have exerted downward pressure on Tesla stock price ahead of the Q4 2024 earnings release on Wednesday. Tesla reported the first year-over-year decline in sales figures last year, the first such decline in its history. The company is expected to report Earnings Per Share (EPS) of $0.76 and revenues of $27.6 billion.
Tesla Stock Price Prediction
Tesla stock price pivots at $408 and the momentum favours the downside. With the sellers in control,action will likely go lower to the first support at $390. However, a stronger downward momentum will break below that level and test $380.
On the upside, action above $408 will signal control by the buyers. In that case, the stock will likely move higher to the first barrier at $416. The downward narrative will be invalid if action goes above that level. The resulting momentum could also drive TSLA price higher to test $428.
