Tesla Stock Dips: Key Price Points to Watch Amid Robotaxi Event Disappointment

Essential Insights

• Tesla shares experienced a significant decline following the underwhelming robotaxi event that left investors wanting more.
• The stock is currently consolidating within a flag pattern, indicating a potential continuation of its previous upward trend.
• Trading volumes remain subdued, hinting that major investors might be hesitant while processing Tesla's latest updates.
• Key support levels to watch include $225 and $205, while resistance zones near $265 and $300 could challenge the stock's recovery.

On Friday, Tesla (TSLA) shares fell sharply after the company’s highly anticipated unveiling of its autonomous Cybercab and other innovations did not fully satisfy investor expectations.

During the event on Thursday evening, CEO Elon Musk introduced the Robovan, capable of seating up to 20 passengers or transporting cargo, and highlighted the Optimus humanoid robot as Tesla's “largest product ever.”

The stock dropped approximately 8% to around $220 midday Friday as investors had hoped for more comprehensive robotaxi plans and a new affordable vehicle, which were not disclosed.

Despite a 12% decline year-to-date, Tesla’s shares surged over 30% in Q3 fueled by optimism around delivery numbers and the robotaxi reveal. The company is set to report Q3 earnings after market close on October 23.

Below is a detailed technical analysis of Tesla’s price chart, outlining critical levels investors should monitor.

Flag Pattern Indicates Potential Uptrend Resumption

Since hitting a low in early August, Tesla’s stock climbed steadily until early October before pulling back within a flag pattern, which often signals a continuation of the prior uptrend.

However, trading volumes remain below average, suggesting that institutional investors and other large market players may be cautious as they evaluate Tesla’s recent developments.

Investors should focus on several pivotal support and resistance points that could define the stock’s near-term trajectory.

Critical Support Zones

The initial support to watch is near $225, aligning with the flag pattern’s lower boundary and the 50-day moving average. This area also coincides with a trendline dating back to November of last year, potentially attracting buying interest.

If selling pressure intensifies, Tesla could retest support around $205, a level marked by multiple chart peaks and troughs from October 2023 to August 2024, offering potential entry opportunities.

Resistance Levels to Monitor

A breakout above the flag’s upper trendline could propel Tesla shares toward the $265 region, where resistance is expected from past swing highs recorded between October 2023 and October 2024.

Should bullish momentum strengthen, the $300 level represents a significant resistance point near the stock’s 2023 peak, where profit-taking might occur.

Notably, a bars pattern derived from Tesla’s prior uptrend suggests a price target slightly above this area, reinforcing the importance of the $300 mark.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Please review our warranty and liability disclaimer for further details.

As of the article's publication, the author holds no positions in the securities discussed.

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