- Tesla stock price has formed a falling wedge pattern and a Marubozu candle.
- Wall Street analysts expect the company's deliveries to hit 3 million in 2030.
- The company will benefit as consumers rotate to EVs as gasoline prices jump.
Tesla stock price has rebounded modestly in the past two days, mirroring the performance of the broader stock market. TSLA jumped to $380, up by $30 from its lowest point this year. This rebound could be the beginning of a strong comeback as a falling wedge pattern forms.
Tesla Stock Price Falling Wedge Points to a Surge to $500
The daily chart shows that the TSLA stock price has plunged in the past few months. It dropped from the all-time high of $500 in December last year to a low of $350 late last week. It has remained below the 50-day and 100-day Exponential Moving Averages (EMA).
On the positive side, Tesla stock has formed a Marubozu candle, a common bullish reversal sign. This pattern is made up of a body and has no upper and lower shadows and is a common bullish reversal sign.
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The stock also formed a falling wedge pattern, which is made up of two descending and converging trendlines. A wedge often leads to a strong bullish breakout over time. It is nearing the upper side, which coincides with the Ultimate Support level of the Murrey Math Lines tool.
The stock is also nearing the 38.2% Fibonacci Retracement level. Also, the Relative Strength Index (RSI) and the MACD indicators have turned around.
Therefore, the most likely Tesla stock price forecast is bullish, with the next key target being at $435, which is the 23.6% Fibonacci Retracement level. A move above that level may push the TSLA stock to over $500.
Tesla’s Business is Expected to Do Well as Gasoline Prices Jump
Tesla stock price may rebound as the company emerges as one of the top beneficiaries of the ongoing Iran war, which has pushed gasoline prices higher. The average gasoline price has jumped to $4, while diesel has soared to $6.
There is a possibility that more Americans will shift to Tesla vehicles now that many traditional companies like General Motors and Ford have pivoted back to the Internal Combustion Engine (ICE) vehicles.
Indeed, Wall Street analysts expect that the company’s annual deliveries will continue rising in the coming years, moving from 1.68 million this year to over 3 million in 2030.
Tesla is already seeing a strong comeback in Europe, where registrations rose by 203% in France and 178% in Norway in March. This growth was driven by its cheaper Model Y vehicles. This growth explains why analysts expect its Q1 delivery numbers, which will come out on Thursday, to be better than the median estimate of 365,645.
Tesla may also benefit from the upcoming initiatives, including the upcoming SpaceX Initial Public Offering (IPO) and its Optimus robot. It is also working on more artificial intelligence (AI) and robotaxi initiatives that may boost its performance in the long term.
Still, these bullish catalysts are coming despite the fact that Tesla is still one of the most overvalued companies on Wall Street, with its forward price-to-earnings ratio being 178, much higher than the S&P 500 Index average of 19.
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