Tesla stock price is hanging by a thread as it retests a critical support level after breaking down below it earlier this month. The selling pressure is pointing toward a bearish continuation for the shares of the biggest EV manufacturer. However, there is still some hope that bulls could push the price above $176 support soon.
Due to the prevailing bearish sentiment surrounding the stock, even the biggest Tesla bulls are revising their outlooks. The soft China demand is expected to impact Tesla Inc's first quarter earnings report, which is set to be released on April 17. Citing these concerns, Wedbush's Dan Ives, who is known to be a Tesla bull, trimmed his price target on NASDAQ: TSLA from $315 to $300.
At the time of writing, the Tesla shares are changing hands at $176.03 on the Nasdaq stock exchange. This translates into a decline of 2.15% on the daily timeframe. However, the stock is still up 2.87%. The bounce that occurred from the monthly low of $161 seems to be fading as the bears aim for more downside.
At the end of January, Tesla delivery numbers were expected to remain 494,000 in the year's first quarter. However, due to the decline in sales and a weakening demand from China, the latest FactSet consensus estimates the deliveries to be around 457,000. While this is significantly below the initial expectations, it will still be an increase from last year's 423,000 deliveries in Q1.
For a deeper understanding of the price action, let's analyze the NASDAQ: TSLA chart on the weekly timeframe. It is quite evident how the price is struggling to reclaim the $176 support. The next few days will be very critical as the Tesla price prediction will heavily depend on the outcome of this retest.
In case of rejection from $176, I expect a strong bearish continuation toward the $152 support level, which was also the April low. On the other hand, a breakout above $176 might propel the price toward the key $200 level for a decisive retest on the weekly timeframe.
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