- Summary:
- Tesla stock price has declined more than 6.5 percent in the last two sessions and the Trump card has lost its momentum.
Tesla stock price was down in the pre-market trading session on Monday as investors adopted a wait-and-see posture ahead of Q4 deliveries announcement by the company. The stock was at $423 at press time, having erased 1.8% on the daily chart to stay on course to a third successive session loss.
TSLA price weakens as Trump momentum fizzles
Tesla (NASDAQ: TSLA) has formed a double-top pattern with the neckline at $420. In addition, a decline of more than 6.7% in the last two sessions has resulted in weak traction that could ultimately breach that mark. The company is expected to announce its fourth quarter sales on January 2, and that could potentially set the tone for its price trajectory in the coming weeks.
Investors have reaped big since Trump’s win, with Tesla stock price having gained 71% since November 5. However, the Trump sentiment has largely been prized in, shifting focus to core company performance. Tesla is expected to announce Q4 sales of between 500,000-512,000, according to analysts’ estimates. That would signify a 5%-7% YoY rise in sales, underlining a strong recovery by the company after initial struggles in the first half of 2024 amid tight competition from Chinese EV makers.
Self-driving technology to take a back seat
Ultimately, however, Tesla stock price is likely to be more forward-leaning in the coming months, with investors assessing the progress of its self-driving cars. That segment is expected to generate a blend of tech licensing and Uber-like revenue, which could result in strong tailwinds.
However, Tesla’s first self-driving vehicle won’t hit the shops at least until 2026. That means sales figures of if its current models will likely return to play in influencing the stock’s price in the coming weeks.
Tesla stock price prediction
Tesla stock price pivot mark is at $427 and resistance at that level signals the prevalence of downward momentum. With the sellers in control, immediate support is likely to be at $418. A stronger downward momentum will break below that level, setting the next target at $410.
Conversely, moving above $427 will shift the momentum to the upside, with the first resistance likely to be ar $434. Breaking past that barrier will invalidate the downside narrative, and the resulting momentum could push TSLA higher to test $443.
