San Francisco, CA – Tesla shares closed higher on Tuesday for the fifth consecutive session following a recent two-month selloff. The EV maker has been able to recover some of the ground that was lost during this period of decline. Analysts have noted that despite briefly dropping below the 200-week moving average, Tesla shares have managed to reverse course and climb back above this key indicator. This shift has been highlighted by the formation of two bullish hammer candlesticks.
Last week, Tesla CEO Elon Musk held an all-hands meeting where he encouraged employees to hold onto their Tesla shares. Musk argued that Wall Street does not fully grasp the company’s value, particularly in relation to its self-driving technology and robotics products. Despite a noticeable drop in Tesla’s sales in the European Union during February for the second consecutive month, the company’s share price managed to increase on Tuesday.
Following Donald Trump’s election win in November, Tesla shares saw a rally as investors were optimistic about Musk’s relationship with the new administration. However, after Trump’s inauguration in January, shares began to decline as concerns arose among investors regarding Musk’s involvement in potentially impacting Tesla’s brand negatively, especially amid declining sales and protests. This uncertainty was further amplified by questions about how tariffs would affect Tesla’s business.
Although Tesla entered this week on a nine-week losing streak, the company’s stock remains approximately 40% below its record high from December. Despite this, Tesla shares rose 3.5% on Tuesday to close at $288.14, marking a 28% increase over the past five trading sessions.
Looking at Tesla’s weekly chart, analysts have utilized technical analysis to identify key price levels that investors should keep an eye on moving forward. After briefly dropping below the 200-week moving average, Tesla shares have managed to climb back above this indicator while also experiencing a golden cross as the 50-week MA crossed back above the 200-week MA in January.
Potential areas of interest on Tesla’s chart include overhead levels around $300, $385, and $680, along with support levels near $217 and $155. Investors will be closely monitoring these key levels as Tesla’s share price continues to fluctuate amid changing market conditions.