Tesla share price recovered on Tuesday after Tesla Chief Executive Elon Musk indicated in a tweet that the crashed Tesla 2019 Model S which crashed in Houston was not on autopilot at the time of the crash.
Musk cited data logs from the crashed vehicle, saying that the car was not a fully self-driving model and the autopilot mode was not activated.
Several news outlets had reported that the ill-fated Tesla vehicle was probably operating in driverless mode, citing police authorities who had stated that they believed the car was not operating with a driver when it crashed and killed the two occupants in the car.
The tweet by Musk appears to have restored some investor confidence in the stock, which is up 1.05% as of the time of writing.
Technical Outlook for Tesla
Tesla has given up a lot of the intraday gains and is barely hanging on to stay in the green as the NY trading session hits the 90-minute mark.
The active daily candle was able to find support at the 38.2% Fibonacci price level of 715.63, as predicted in my analysis of the stock yesterday where this level was identified as the initial target for sellers. Despite today’s gains, this support remains at risk. A breakdown here opens the door for 693.75 to become the new target. Other targets to the downside include 671.81 and 654.12.
On the flip side, a break above 743.70 opens the door towards 784.76. A break above this level established a higher high that signals the continuation of the recovery in Tesla’s share price towards the January 2021 highs.