Tesla Stock Takes A Breather: Is The Rally Losing Charge?

Tesla Inc. TSLA shares closed down by 4.95% on Friday and slipped another 1.35% in pre-market trading Monday, pausing what has been an electrifying 2024.

With year-to-date gains of 73.76% and a 105.69% surge over the past six months, is this dip a buying opportunity — or a warning sign for investors?

Tesla’s Q4 Delivery Buzz Meets Profit-Taking Blues

Tesla's recent stumble comes as the EV giant gears up to report its fourth-quarter delivery numbers. Wall Street anticipates 511,000 vehicles, up 10% from the prior quarter and 5% year-over-year. If these numbers hold, this Elon Musk-led company’s 2024 total deliveries could reach 1.8 million vehicles, narrowly missing 2023's figure of 1.81 million.

Adding to the mix, speculation about the Cybertruck's potential launch in China stirred excitement, only to be promptly squashed by Tesla China, which denied any plans for a Jan. 1 debut.

Meanwhile, macro headwinds loom. The Federal Reserve’s hawkish stance on interest rates could weigh on vehicle sales, as rising borrowing costs discourage financing—a critical factor for the auto sector.

Read Also: Tesla’s Referral Benefits In North America To Reduce Starting 2025: Here’s What You Should Know

Tesla Stock Chart: Mixed Messages For Traders

Chart created using Benzinga Pro

Tesla's technical indicators present a fascinating puzzle:

• Bearish near-term signals: TSLA stock trades below its eight-day simple moving average (SMA) ($444.49), a potential red flag.
• Bullish longer-term signals: TSLA stock remains above its 20-day ($412.95), 50-day ($338.59) and 200-day ($236.36) SMAs, keeping optimism alive.
• Momentum indicators: A robust moving average convergence/divergence (MACD) indicator of 31.46 and a relative strength index (RSI) of 58.59 suggest the stock isn't overbought—yet.

What's Next For TSLA Stock?

Tesla's trajectory depends on its fourth quarter delivery performance and investor appetite for high-growth names in a challenging macro environment.

While the stock's recent pullback reflects profit-taking and cautious positioning, the longer-term bullish indicators hint at potential upside if deliveries beat expectations.

For now, the EV leader's stock faces a critical juncture. A stellar delivery report could recharge the rally, but elevated interest rates and bearish near-term technicals pose risks. Investors may want to buckle up for volatility ahead.

Read Next:

• Tesla Bull Urges Investors To Do Their Own Research: ‘…CEOs Are Paid To Be Optimistic…’

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