Tesla stock price was up in the premarket session on Thursday, extending the upward momentum triggered by news of initial approval of its autonomous vehicles testing in California. The stock was at $238 at the time of writing, having gained 1.1% on the daily chart, following up on Wednesday’s 4.6% gain.
The EV market is currently stimulated by news of China’s BYD breakthrough superfast battery charging stations. That has added downward pressure on Tesla stock price, with its position as the EV market poster child threatened. Tesla’s fastest charging stations take 15 minutes to deliver a charge with a range of 273 kilometers. That is about three-times longer than BYD’s version, which also delivers a longer charge distance of 400 kilometers.
BYD flipped Tesla (NASDAQ: TSLA) as the top-selling EV manufacturer in China in 2024 and the milestone charging solution is likely to widen the gap. However, Tesla is counting on its autonomous driving vehicles to give it an edge and help it reclaim its lead.
Tesla received a license on Tuesday to start testing its self driving vehicles in California, with the license initially allowing the company to transport its employees in a taxi-like service. Public testing of its unsupervised Full Self Drive (FSD) robotaxis will be rolled out in Austin, Texas beginning June.
However, it could take years before the market fully embraces autonomous vehicles, posing a question as to what Tesla would have to do in the intervening period to keep its revenue stream on the upward trajectory amid tightening competition from China.
Tesla Stock Price News
The momentum on Tesla stock price favours it to stay on the upside above the pivot mark at $230. The stock will likely meet its initial resistance at $243, but a stronger momentum will break above that barrier and potentially test $252.
On the other hand, TSLA could see a momentum shift to the downside if it breaks below $230. With the sellers in control, the first support is likely to be at $222. The upside narrative will be invalid if the price breaks below that level. In addition, an extended control by sellers could take the action lower to test $215.
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