Tesla stock price has upped its tempo, gaining 3% in the opening hour of trade on Friday to hit $331. This is the last session before the company launches the much-awaited robotaxi trials in Austin, Texas, and traders are jostling for a piece of the action. While the event promises to be a key turning point in the company’s business model, it also carries the risk of a potential underwhelming launch.
The stock has gained 4.4% in the last five sessions, and has a pulpable bullish undercurrent. Traders should watch out for volumes as high-impact events are often followed by aggressive profit taking. Therefore, declining trading volumes during an uptrend is a strong signal of a weakening momentum. While the robotoxi venture promises longer-term optimism, Tesla stock price faces pressure from short-term disruptions caused by weak sales.
The company continues to face rising competition in its key markets of China and Europe and analysts forecast Q2 deliveries of 375,000, below an earlier consensus figure of 440,000 units. In addition, a weak-long production pause in its Austin plant starting June 30 could see it fall behind in its production targets. These factors present near-term headwinds against Tesla stock price in the coming days and could trigger an extended stay below $320.
Tesla stock price forecast
The momentum on Tesla stock price calls for further upside if action stays above $326. That will likely see initial resistance encountered at $332. A stonger hold by the buyers will break above that level and potentially test $336 in extension.
On the other hand, TSLA price momentum will shift to the downside if it breaks below $326. That will likely see the first support established at $322. Breaking below that level will invalidate the upside narrative. In addition, the resulting momentum could extend the downside and test $319.
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