Tesla stock price returned to the upside on Tuesday, trading at $322 in the opening hour after gaining 2.2%. Investors are buying the stock in anticipation of the launch of robotaxi trials set to begin in Austin, Texas from next week. The launch is anticipated to form the foundation of the company’s transition to autonomous driving-focused growth, which it hopes to disrupt the global auto market. In addition, long-term investors see this as the beginning of a greater AI-driven future.
Pressure Remains on Tesla Stock Price
However, despite the latest uptick in Tesla stock price performance, there remains underlying pressure on the company’s fundamentals. First, its falling sales in China and Europe will likely impact its balance sheet adversely in this quarter. A recent Wells Fargo report states that the company will need to increase its sales by 50% in June to meet analysts’ forecasts.
In addition, Tesla (NASDAQ: TSLA) reportedly plans to shut down its Austin manufacturing plant starting June 30th- the third pause this year. That could potentially interrupt its production targets. On the broader scale, continued geopolitical tensions in the Middle East present an existential headwind for the global economy.
That said, Tesla stock price will likely find support from the uptick in its traded volume. The last 24 hours saw $2.63 billion worth of trade, up from $2.59 billion seen in the previous time window. With the price uptick, that signals rising buying appetite, which could favour the upside.
Tesla Stock Price Prediction
Tesla stock price pivots at $320 and action above that level favours the bulls to stay in control. The first resistance will likely be at $325. However, a stronger upward momentum will go above that barrier and potentially clear the path to test $330.
Alternatively, TSLA price could go below $320 and shift the momentum to the downside. That could see primary support established at $317. The upside narrative will be invalid if the stock price breaks below that level. Furthermore, an extended control by the sellers could send the action lower to test $312.
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