Tesla stock price experienced a slight decline of 0.31% on Monday, following a gain of over 15% in the week prior from its October lows. This surge was largely due to the positive sentiment that was felt after last week’s job data release. The recent economic data has lowered expectations for further rate hikes by the US Fed.
The stock of Tesla is showing signs of consolidation around 200 MA after breaking above it at the end of last week. The month of October has not been a favorable month for the EV manufacturer as the stock tumbled 23% after its Q3 earnings missed the market expectations.
There is something interesting brewing in Europe for Tesla as a source reveals the EV producer has started to build a 25,000-euro car in its plant in Germany. This move aligns with Tesla’s aim to expand into the mass market and achieve its goal of delivering over 20 million cars by 2030.
Side by side, Tesla has also responded to IG Metal union’s demand to increase the wages of its workers operating in the German factory. This wage increase which is set to take effect by November, includes a 4% increase, on top of a €1500 euro bonus in December to counter inflation.
TSLA Chart
Tesla Stock Price Forecast
In my last analysis of NASDAQ: TSLA, I mentioned the strong possibility of a bearish leg in case of a breakdown from the symmetrical triangle pattern. So, it was not shocking at all when the stock suffered a 20% correction toward its June lows in October after the release of the company’s Q3 earnings.
Tesla stock price forecast entirely depends on the bull’s ability to hold the 200 MA level. Currently, the chart shows the 200 MA lies a few cents above the current price. However,if the price gains strength above $219, I expect the recovery rally to catch fire.