Electric vehicle maker Tesla (NASDAQ:TSLA) has been on a real comeback tour lately. CEO Elon Musk’s takeover of Twitter left many investors puzzled and looking for the doors. However, Tesla’s various moves, including a hefty price cut that started a price war, have helped bring the company back. Yet not everyone is quite so convinced.
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Tesla’s upward recovery has been astounding so far. Just weeks ago, Tesla posted its intra-day low for the month. Now, it’s back over $200 per share. That’s better than double that intra-day low. With an upcoming Investor Day that should spark investor interest further than it already is, there’s every likelihood that Tesla shares could continue their upward trend. It also helped that the National Transportation Safety Board also cleared Tesla’s advanced driver assistance system of wrongdoing in an April 2021 crash where a driver died.
However, recent technical analysis from BTIG suggests that Tesla may be in for a slowdown after all. BTIG analysis suggests that the $210 – $225 range is “…a very strong area of resistance.” The last time such a level was reached, there was “..a lot of volume traded…” That suggests substantial supply and a likely ceiling.
Although analyst consensus calls Tesla stock a Moderate Buy, its average price target of $198.85 implies 5.8% downside risk.
