What Happened
Tesla (TSLA) is set to invest $250 million into its Berlin gigafactory, signalling continued expansion of its European manufacturing footprint. The news comes as Tesla shares have been consolidating after a volatile stretch, with the stock last trading around $177.50, representing a modest gain of approximately 1.4% on the session as markets digested the announcement.
Key Levels
- Support 1: $170.00 — a significant psychological level and recent swing low that has held on multiple tests over the past three weeks.
- Support 2: $161.50 — the broader structural support zone from the early 2024 base, representing a deeper pullback level if sentiment sours.
- Resistance 1: $185.00 — the immediate overhead barrier where sellers have stepped in during the last two rally attempts.
- Resistance 2: $194.50 — the 200-day moving average, a key longer-term level that Tesla has struggled to reclaim in recent months.
Technical Picture
Tesla remains in a short-term downtrend on the daily chart, trading below both its 50-day moving average (~$191.00) and 200-day moving average (~$194.50). The RSI is currently sitting near 44, suggesting the stock is neither oversold nor overbought — there’s room to move in either direction. A bullish divergence is forming on the daily RSI, which could hint at a base building, but no confirmed reversal signal yet.
What Traders Are Watching
The key trigger for bulls is a clean daily close above $185.00. That would shift short-term momentum and open the door toward the $194.50 resistance zone. On the downside, a break and close below $170.00 would be a bearish signal, potentially exposing Tesla to a retest of $161.50. Volume will be critical — any breakout needs to come with above-average volume to be taken seriously.
Bias
Neutral leaning bearish. While the $250M investment is a positive long-term signal, Tesla’s price action remains technically weak below its key moving averages. Traders should wait for a confirmed break of $185.00 before chasing upside.
Source: Reuters