Tesla, Inc. TSLA shares plummeted on Thursday due to the release of the company’s fourth-quarter results, but showed a slight rebound on Friday. With the stock trading in the oversold zone, potential investors may be intrigued by the current levels.
What Happened: Tesla took a significant hit on Thursday, closing down 12.13% at $182.63, according to Benzinga Pro data. This marked the lowest level since May 25, 2022. The stock managed a 0.34% recovery on Friday, ending at $183.25.
The stock’s 14-day relative-strength index is currently in an area indicating oversold levels.
Chart Courtesy of Benzinga
See Also: Everything You Need To Know About Tesla Stock
A post on Stocktwits revealed that despite the pullback, Tesla’s stock has maintained a consistent long-term upward trending line. According to the chart, stretching back to the start of 2020, every time the stock crashed, formed a long-tailed candle, and hit this trendline, it has bounced back with strength.
A long-tailed candle suggests rejection of lower prices.
Why It’s Important: Tesla is facing near-term deceleration with no significant catalysts, although vehicle price fluctuations may cause some temporary market fluctuations. First-quarter deliveries due in early April — or any update regarding the company’s next-gen electric vehicle, the timeline of the Giga Mexico factory, or a potential launch in India — could impact the stock in the near term.
Post the fourth-quarter earnings release, analysts have revised their estimates and price targets for the stock downwards. However, despite the downward adjustments, the average analysts’ price target of $222.36, based on data compiled by TipRanks, suggests potential upside of over 21%.
Read Next: Tesla Alienates Investors With Sketchy Near-term Outlook, Rivian’s Rumored R2 Global Premiere, Canoo On A Roll: Biggest EV Stories Of The Week
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