On Thursday, Tesla’s stock encountered a day of mixed trading dynamics. Initially, it slipped below the $169 per share mark, signaling a potential downtrend. However, as the trading session progressed, it managed to reverse its trajectory, ultimately closing with a 1.7% gain at $174.60. This rebound followed a previous day’s decline of 2.9%, which had been prompted by broader market concerns arising from the release of the March inflation report. The report revealed a faster-than-expected increase in prices, which cast doubts on the likelihood of Federal Reserve interest-rate cuts later in the year. Adding to the downward pressure on Tesla’s stock was the release of weak sales data from China. Sales figures for the first week of April showed a substantial decline of 89% week over week and 86% month over month, according to data tracked by Citi analyst Jeff Chung.
Despite these challenges, Tesla’s stock displayed resilience, supported by hints from CEO Elon Musk regarding advancements in the company’s self-driving car technology. Musk’s tweet about a robotaxi reveal scheduled for August 8 sparked optimism among investors, suggesting progress in Tesla’s autonomous driving capabilities. Additionally, Tesla offered a complimentary one-month trial of its highest-level driver assistance product, Full Self Driving (FSD), to all Tesla owners. This move prompted speculation about potential adjustments to the pricing of FSD. An analysis conducted by Canaccord analyst George Gianarikas suggested that customers may be willing to pay around $5,000 as a one-time fee for FSD, potentially influencing Tesla’s pricing strategy.
Despite these positive indicators, Tesla’s stock encountered volatility in recent weeks, particularly following the release of its weak first-quarter delivery numbers. However, it managed to maintain support above the $164 level, which was identified as a key support level by market technician Katie Stockton. This support level represents a threshold where investors are inclined to add to their Tesla positions, providing some stability to the stock amidst turbulent market conditions.
Looking ahead, Tesla’s first-quarter earnings report, scheduled for April 23, is anticipated to be a significant event for the stock. Analysts are expecting earnings per share of 53 cents, reflecting a decrease from 85 cents a year ago. The earnings report will likely provide insights into Tesla’s financial performance and future prospects, potentially influencing investor sentiment and driving movement beyond the current trading range of $165 to $185 for Tesla’s stock.