Watch These Tesla Stock Price Levels After Post-Earnings Surge

Tesla (TSLA) shares gained ground in extended trading on Wednesday as optimism over the automaker’s self-driving outlook trumped fourth-quarter results that came in below Wall Street’s expectations.

CEO Elon Musk told investors on the earnings conference call that the company’s full self-driving technology continues to make significant inroads. Among other developments, Musk said the company plans to start using the unsupervised version of the self-driving software with Tesla vehicles at the company’s Austin, Texas factory starting in June, with a broader public release possible this year.

Tesla said it expects vehicle sales, which fell in 2024 for the first time, to return to growth this year. The company also said its plans for a more affordable model are still on track to enter production in the first half of the year, though no official announcement has been made about what the more affordable Tesla will look like or cost.

Tesla shares rose 4% to around $405 in after-hours trading, after falling more than 2% during the regular session. The stock has more than doubled over the past 12 months, with much of that gain coming since the early-November presidential election amid hopes that Musk’s close ties with President Donald Trump will directly benefit the automaker.

Below, we take a closer look at Tesla’s chart and apply technical analysis to identify crucial price levels worth watching out for.

Flag Pattern in Focus

Since hitting a record high last month, Tesla shares have consolidated within a flag, a bullish chart pattern that indicates a brief pause in the stock’s uptrend before another move higher. Indeed, the price looks sets to gap above the pattern’s upper trending on Thursday in a move that could resume the stock’s upward momentum.

Investors should also watch for an increase in trading volume, which has been in steady decline throughout the recent flag pattern.

Let’s analyze Tesla’s chart to identify a longer-term bullish target and also point out several major support levels to watch during possible retracements.

Bullish Price Target to Watch

To project a bullish target, investors can use the bars pattern tool, which analyzes prior trends on the chart to forecast how a future move higher might look.

When applying the tool to Tesla shares, we take the stock’s trending move from October to December and overlay it from the flag pattern’s lower trendline. This predicts a target of around $790, a location about double Wednesday’s closing price where investors may decide to lock in profits.

We selected this earlier trend as it followed a prior consolidation period of similar duration to the stock’s current flag pattern.

Major Support Levels to Monitor

During dips, investors should initially watch the $360 level, a location where the shares could find support near two minor peaks that formed on the chart in November.

Selling below this level could see a more substantial fall to around $300. This area on the chart may attract buying interest near the physiological round number and the prominent July 2023 swing high, which marked the stock’s record high until last November’s election-driven breakout.

Finally, further selling opens the door for a decline to the $265 level. Investors may look to accumulate shares in this region, given it finds a confluence of support from the upward sloping 200-day moving average and a trendline that connects multiple peaks on the chart stretching back to October 2023.

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As of the date this article was written, the author does not own any of the above securities.