Tesla shares quietly outperformed the Nasdaq index during the recent slump and now face an important test at current levels.
TSLA – Weekly Chart
TSLA is now trading at a key high, with shares hitting resistance at $481.20 from December 2024. The uptrend line from the 2021 tech high intersects at $488.72. A move above that level could trigger a strong rally in the shares.
The U.S. share index was lower on valuation concerns, despite recent earnings coming in close to expectations. The Case-Shiller PE index measures the collective valuation of 500 stocks and recently moved above 40. That was only the second time it has happened, and the first time since the 2000 tech bubble burst.
The company’s stock was higher after Elon Musk said the EV maker was testing its robotaxis without safety monitors in the front passenger seat.
Tesla launched a limited robotaxi service in Austin, Texas, in June using modified Model Y vehicles equipped with Full Self-Driving. Early operations were geo-fenced and included a human “safety monitor” in the passenger seat.
“Testing is underway with no occupants in the car,” Musk said in an X post last week.
Investors and analysts are now betting that Tesla will ramp up testing and rapidly deploy its driverless taxis as it prepares to launch a Cybercab model next year.
“The news Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company is making progress in its testing, in line with management’s statements during the third quarter earnings call,” said Seth Goldstein, a senior equity analyst at Morningstar.
Tesla has the highest market cap of any automaker, but investors are betting on robotaxis and humanoid robots to drive the shares higher in the new year. The levels in play could determine whether we see a breakout or a longer-term high.
