- After gaining nearly 10% in the last month, Tesla stock price has built up a strong momentum amid renewed excitement around FSD update.
Tesla stock price was up in the pre-market session on Thursday, retesting the $320 mark. The sentiment surrounding the stock is upbeat following shareholders’ move to reward CEO Elon musk with $29 billion worth of shares. Investors are upbeat that the incentive could motivate Musk to allocate most of his time to the EV company and help speed up its tech integration amid falling sales.
Beyond his hefty compensation package, Musk has also teased a significant upgrade to Tesla’s Full Self Drive capabilities by September, exciting its investors. Tesla (NASDAQ: TSLA) also has its momentum supported by the strong performance of tech stocks in recent days. Tech-heavy Nasdaq index has risen by 1.6% in the last five sessions, instilling confidence in the market amidst recent weakness in the US labour market.
After gaining nearly 10% in the last month, Tesla stock price has built up a strong momentum that will likely help establish support at $320. Looking ahead, investors will likely be keen on the developments around the FSD software update. This is key to building confidence around the company’s AI transition as sales decline and competition stiffens in its key markets of Europe and China. Conversely, an underwhelming update could potentially erase recent gains and subdue Tesla stock price upside.
Tesla Stock Price Prediction
The momentum on Tesla stock price favours the upside to continue above $318. The first resistance will likely be at $321.60. However, a stronger momentum will likely break above that level and potentially test $325.
On the other hand, going below $318 will indicate control by the sellers. With that, TSLA price will likely find primary support at $316. Breaking below that level will invalidate the upside narrative. Also, such momentum could extend the downward momentum and potentially test the second support level at $313.50.
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