Tesla's 2023 Comeback Story: Can The Electric Car Giant Regain Its Former Glory Amidst Market Volatility And Shifting Investor Interest?

• Tesla experienced a staggering 1,626% gain at its peak in November 2021, followed by a sudden 58% price drop from its all-time high.
• The stock is currently in a period of consolidation, with the $100 and $200 levels acting as support and resistance.
• Tesla's trading volume saw a drastic decrease from $180 million in February to $136 million in May 2023, indicating dwindling investor interest and ongoing stock instability.

Despite the tumultuousness of 2020, Tesla Inc TSLA defied expectations and experienced exponential growth throughout the year. At its peak in November 2021, investors were taken aback by a remarkable gain of 1,626%, only to be met with an unforeseen sudden decline shortly thereafter, leaving investors questioning what lies ahead for this stock's price.

Tesla's stock has faced a daunting 58% price drop since its all-time high peak. Fortunately, shareholders found some reprieve in January 2023 when support was formed at $100, halting the downward trend and starting an impressive comeback.

After displaying impressive strength following the $100 bounce, Tesla's stock price gained further ground by breaking up through the weekly 200 SMA resistance. However, this rise was short-lived as April saw a reversal to the downside after hitting the $200 resistance zone.

Despite initially climbing slightly above this $200 round number, this notable psychological level proved to be an obstacle, and prices have since pulled back.

After pulling back, the stock is currently in a period of consolidation as both the $100 and $200 levels impose their influence on its movements, acting as support and resistance.

In the span of a few months, Tesla's trading volume suffered a drastic decrease, tumbling from an average daily volume of $180 million in February to just $136 million by May 2023.

This substantial drop hints at dwindling interest among investors and is likely one of the factors causing ongoing stock instability.

On Friday, though, Tesla investors were given a much-needed boost of optimism as the stock's candle gapped up upon market opening and finished with impressive results.

To continue this bullish move in progress, breaking past both weekly and daily 200 SMA levels followed by surpassing the $200 round number resistance will be essential.

After the closing bell on Friday, May 5, the stock closed at $170.06, trading down by 5.50%.