Following the highly anticipated weekend launch of its autonomous robotaxi service in Austin, Texas, Tesla shares saw a notable spike on Monday. Although the service’s initial rollout was small, CEO Elon Musk has stated his desire to quickly bring it to more cities, possibly reaching hundreds of thousands of vehicles by the end of the following year. By the end of 2026, the robotaxis and the company’s self-driving technology, according to Wedbush analyst Dan Ives, could double Tesla’s market capitalisation.
Tesla’s stock surged more than 8% on Monday, hitting about $349 per share. The stock has increased by more than 60% since its low point in early April, even though it is still down roughly 14% from the start of the year. Musk’s decision to resign from his position as head of the Department of Government Efficiency in order to concentrate more on his businesses, including Tesla, has contributed to this rally.
An important technical development can be seen when examining Tesla’s stock chart in greater detail. The stock went into a consolidation phase within a pennant pattern just above its 50- and 200-day moving averages after reversing to these crucial indicators. A possible new upward trend is indicated by Monday’s breakout from this pattern and above-average trading volume. Additionally, the relative strength index surged, suggesting that the stock was gaining momentum.
Investors will be keeping an eye on a few key price points in the future. Around $365, or 5% above Monday’s closing price, is the first significant resistance zone. Tesla may pave the way for a subsequent surge towards $430 if it can overcome this barrier. The stock’s record high from mid-December, $489, is a significant level beyond which profit-taking may start.
The $285 support level will be critical on the downside. This price range, which is close to recent lows and previous trading activity, might offer buying opportunities if Tesla’s stock reverses its upward momentum. In the event that the stock experiences downward pressure, investors may find protection at this level, which corresponds to the November breakaway gap.
