Tesla Inc. (TSLA) - April 4, 2025
On a day when the markets are down another 5 1/2%, we wanted to highlight a name that is once again popping up to the top of the SIA matrix reports: Tesla Inc. Given the amount of negative news around Tesla Inc. and its founder Elon Musk, it is somewhat surprising to see that, as the dust settles from the last few weeks of market turmoil, shares of TSLA are performing relatively well compared to both the Magnificent 7 stocks and the broad market. In the table presented, note that while Tesla shares are down -6.10% (another 10% today) over the past month, the benchmark Invesco QQQ Trust (QQQ) is down -9.23% (another 5% today), while the other 6/7 Mag 7 stocks are down in the high double digits (-12% to -18%, not including today’s losses). So, while there may not be a heap load of investor appetite to get long on the US equity markets, if one were looking for exposure, it’s amazing that names like Tesla are top of mind and highly ranked within the SIA's unemotional platform. Turning to the first chart presented, we have added a resistance line to the daily candlestick chart that runs back to 2020, where we find resistance just above current levels at $290, with the top-line resistance also highlighted at $430. Support, on the other hand, on this candlestick is presented with a positive trend line outlined in green, where the whole level of $200 might become significant to monitor. Also, note the SIA SMAX reading for TSLA shares, where a perfect score of 10 out of 10 is presented, suggesting that the SIA platform might indicate TSLA shares are near-term outperformers. Finally, it is interesting to note the volume gains during periods when TSLA shares revert back near the green trend line, which might further suggest what the public deems as fair value for the shares, as millions of shareholders vote with their pocketbooks.
The attached SIA point-and-figure chart does the trendline analysis a little more justice, as point-and-figure charts often do, since they eliminate the white noise of day-to-day gyrations and focus on significant price action only. Here, we can see more specific support and resistance levels in and around the long-term trend line. Initial support would have been at $257.93 (3-box reversal) but was taken out in today’s action. The next level of support then becomes $247.92, which looks to be taken out today as well, so below that, we have support at $220.14 and a trend at $207.44. Also presented on the chart is the SIA overlay tool, where we have superimposed TSLA's position within the SIA S&P 100 Index Report, where advisors can visualize its now favored position (green) having moved up from its most recent unfavored position. Resistance will likely now be whatever support levels were taken out today, most likely the 3-box reversal level (now resistance at $263.09), as well as the red lines highlighted on the chart at $290.47, $361.17, and $486.08.
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