Tesla stock price was up on Wednesday, trading at $332 after gaining 3.3% at the time of writing. The stock has been on a sharp decline for the last three weeks, and was on a three-day losing streak at press time. Tesla has been under downward momentum after the Trump-fueled momentum cooled down. However, it has managed to stay afloat on enthusiasm around its self-driving vehicles.
The Underlying Risk In Tesla’s Robotaxi Business
The company announced that it will start testing its self-driving robotaxis in June this year, with commercial sales set for 2026. However, there’s no guarantee that the vehicles will flip a long-running human culture of driving. For all the hyped safety and convenience, many could still perceive driverless vehicles as a risk too great to bear.
In many ways, Tesla’s key challenge in the self-driving vehicles market could be down to a socialization barrier. Think of it as listening to a rap or rock album composed by AI. The lyrics, the melody, the rhythm and the beat may be perfect, but the lack of a human touch makes it unrelatable and unappealing.
Tesla’s rivals, Waymo and Zoox are yet to start mainstream commercial sales despite relative success with ride hailing. That signifies their measured approach to a market fronted by Tesla (NASDAQ: TSLA) as the next big growth market. The fact that Tesla stock price and the company’s current valuation is based on a perceived strength on that front points to banking on hope rather than reality.
Tesla Stock Price Prediction
Tesla stock price pivot mark is at $333 and the upside will prevail if action stays above that level. The first resistance will likely come at $340, but a stronger momentum could breach that mark and test the second barrier at $349.
Conversely, moving below $333 will favour the sellers to be in control. With that, the first support is likely to be at $326. Breaking below that level will invalidate the upside narrative and potentially test the second support at $320.
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