Watch These Tesla Stock Price Levels After First Record High in Three Years

Tesla's stock has been on a rollercoaster ride over the past few years, but it recently hit a record high, marking a significant milestone for the electric vehicle (EV) giant. As investors celebrate this achievement, it's essential to understand the key price levels to watch and the role analysts play in determining these levels. Let's dive into the details and explore the future price trajectory of Tesla stock.

Tesla's recent rally has been fueled by a post-election surge and analyst optimism. The stock has gained 70% since Trump's victory, with analysts like Adam Jonas (Morgan Stanley) and Goldman Sachs boosting their price targets. However, the stock is overbought, with an RSI above 70, suggesting potential near-term profit-taking. Key support levels to monitor during retracements are around $380 and $300, with the measuring principle forecasting a bullish price target of $585.65. Despite the rally, Tesla's fundamentals remain a concern, with analysts warning of "fundamental headwinds to the core auto business."

Analysts' price targets and ratings significantly influence Tesla's key support levels. Morgan Stanley analyst Adam Jonas increased his price target to $400 from $310, affirming Tesla as his "Top Pick." Goldman Sachs analysts raised their target to $345, though it represents a discount from Tesla's record closing price. These bullish moves reflect analysts' confidence in Tesla's long-term opportunities, such as full-self driving cars and robotics, driving the stock's recent rally. However, investors should monitor key support levels around $380 and $300 during potential pullbacks, as identified by the measuring principle using Tesla's ascending triangle breakout.

The percentage change between the ascending triangle's lower and upper trendlines, when added to the pattern's top trendline value, forecasts a bullish price target of $585.65 for Tesla stock. This calculation, known as the measuring principle, suggests a 121% increase from the $265 level, indicating significant upside potential for the stock. The pattern's top trendline value is a crucial component in calculating the bullish price target using the measuring principle. In the case of Tesla, the top trendline value of the ascending triangle is $265. By applying a 121% increase to this value, the bullish price target is projected at $585.65. This method helps investors forecast potential profit-taking levels and make informed decisions during price discovery.

In conclusion, Tesla's recent rally and record high have investors excited about the stock's future prospects. However, it's crucial to monitor key support levels around $380 and $300 during potential pullbacks. Analysts' price targets and ratings play a significant role in determining these support levels, with Morgan Stanley and Goldman Sachs boosting their targets in recent weeks. The measuring principle, using the percentage change between the ascending triangle's trendlines, forecasts a bullish price target of $585.65. As Tesla continues to innovate and grow, investors should stay informed about the stock's price trajectory and make strategic decisions based on the latest data and insights.