Tesla stock price remains stable but prepares for a reality check ahead of earnings report.

Tesla stock price has been steadily climbing despite weak sales experienced in 2024. There is speculation on whether the upward trend can be sustained after the release of the Q4 earnings report. The stock was up 4.7% to $433.50, showing a 13% gain for the week, with expectations of further growth leading up to the earnings announcement on January 29.

Since Donald Trump’s victory in the 2024 US elections, Tesla stock has been on an upward trajectory. However, concerns have been raised about the company’s ability to maintain this momentum. Tesla reported a decrease in annual deliveries last year while its Chinese competitors flourished, putting pressure on its stock price. This pressure could intensify if the earnings report falls below expectations.

The positive sentiment surrounding Tesla’s autonomous driving technology is a key driver of its stock price increase. Nevertheless, the company’s first robotaxi models are not expected to hit the market until 2026. Therefore, attention will remain focused on its sales figures in the interim. The regulatory environment for self-driving vehicles will also impact the stock, with expectations of a more supportive stance from the Trump administration.

Tesla’s exploration of AI has shifted analysts’ perceptions of its growth trajectory, moving beyond being solely a vehicle manufacturer. Consequently, stock price forecasts have been adjusted upwards, with Morgan Stanley raising its rating on TSLA to “overweight” with a $430 target price.

Technical analysis indicates that Tesla stock is currently poised for an upward movement, with $425 serving as a pivot point. If the bullish momentum continues, resistance at $440 is expected to be tested, and a breakthrough could lead to further gains towards $452. Conversely, a drop below $425 may signal a shift in momentum to the downside, with immediate support at $416. If TSLA falls below this level, it could potentially reach $403.

In conclusion, the performance of Tesla’s stock price post-earnings release will be a critical factor in determining whether the current positive momentum can be sustained. Investors and analysts will be closely watching to see how the company’s financial results impact its stock price in the coming days.