- Summary:
- Tesla stock price has been on an uptrend despite weak sales in 2024. What are the odds it could stay up after releasing Q4 earnings?
Tesla stock price was on the uptrend on Friday as it gained 4.7% to trade at $433.50 at the time of writing. Tesla has gained 13% this week and the momentum is likely to get fresh impetus in the next few days ahead of its quarterly earnings report release on January 29.
Can Tesla Sustain the Trump Momentum?
The EV maker has been on a strong uptrend since Donald Trump was declared winner of the 2024 US elections, but skeptics have been questioning whether it can hold on to the momentum. Tesla (NASDAQ: TSLA) reported the first-ever drop in annual deliveries in 2024 as Chinese rivals thrived. That has brought an underlying pressure on Tesla stock price, which could be exacerbated if its earnings report come out lower than expected.
Tesla stock price upside is driven by the positive sentiment around its autonomous driving technology. However, the company’s first robotaxi models won’t be available in the market until 2026. That means most focus will still be on its sales figureS in the intervening period.
However, the regulatory space for self-driving vehicles will weigh in on the stock, as Donald Trump’s government is expected to provide a more supportive environment. Tesla’s forays into AI have triggered a paradigm shift in assessing its growth path, as it is no longer seen as just a vehicle manufacturer. As a result, analysts have adjusted their stock price forecasts upwards. On Friday, Morgan Stanley raised its rating on TSLA price to “overweight” with a target of $430.
Tesla Stock Price Prediction
Tesla stock price pivots at $425 and the momentum favours the upside. With the buyers in control, the first resistance will likely be at $440. However, an extended bullish momentum will break above that level and test $452.
On the other hand, moving below $425 will shift the momentum to the downside, with immediate support coming at $416. The upside thesis will be invalid if TSLA breaks below that level, and the resulting momentum could extend losses to test $403.
