Tesla’s stock levels has been changing a lot since the 2024 U.S. election. One major reason for this change is because of Elon Musk’s new position in the government.
President-elect Donald Trump picked Musk to lead a new agency called the Department of Government Efficiency (DOGE). The aim of this agency is to cut government costs and reduce regulations. These regulations are rules that companies like Tesla have to follow.
Musk’s new position could give Tesla post-election gains by reducing regulation. This could make it easier and cheaper for the company to operate, which will boost company growth. With Musk in this government role, investors are closely watching Tesla’s stock trading levels. They want to see how the role might impact its price.
Musk’s New Government Role and Its Potential Impact on Tesla
Elon Musk’s new government role given by Trump might be advantageous for Tesla’ company growth. As a leader in DOGE, Musk can push for fewer regulations. The CEO of Tesla has always been very vocal about how too many rules can make it harder for companies like Tesla to innovate and expand.
Therefore, if DOGE decides to ease some regulations under his leadership, it might be advantageous. It could mean fewer obstacles for Tesla, saving the company money and allowing it to invest in new projects or technologies.
In the past, government incentives, like tax credits for electric car buyers in the EV market, increased Tesla’s sales. If Elon Musk influences the government to keep or expand these businesses, boosting incentives, Tesla could benefit even more.
ALSO READ: Hedge Funds Shorting Tesla Suffer Over $5 Billion in Losses
Tesla’s Stock Levels Post-Election Surge and Subsequent Dip
After the election, Tesla’s stock chart was positive. Its stock price significantly increased by more than 30%. It went as high as $344, then went back to about $325. This market volatility likely happened because investors believed that Musk’s new role in the government could help Tesla.
However, stocks often dip after a significant rise (market volatility). This happens because some investors decide to sell and take their profits. When they do this, it causes the price to fall slightly. This type of movement is normal, especially for major companies like Tesla, which are always in the news.
With Musk’s involvement with DOGE, there might be positive changes. However, this also means that Tesla might face more attention from the government. Some investors feel excited about Musk’s new influence, while others worry that it could lead to challenges if the government decides to keep a closer eye on how Tesla operates.
Technical Analysis: Key Price Levels to Watch
Using technical analysis, Tesla’s stock levels just completed what is known as a “cup and handle” pattern on its price chart. This is a shape that shows potential growth. When stocks break out of this pattern, it usually shows investors that buyers are excited and ready to push the price higher.
The recent price action that Tesla made shows that buyers are strongly interested in buying. This suggests that the stock might continue to go up if current market trends hold.
Investors are now looking at different support and resistance levels or investment analysis on the chart. These points are where the stock is likely to bounce up or down. These levels help investors with price prediction. It will also help them predict how the stock might move next or how the market trend might be.
ALSO READ: How Elon Musk’s Endorsement of Trump Might Have Backfired
Support Levels to Monitor During Potential Pullbacks
Support levels or points are price points where a stock might stop falling and start to rise again because buyers jump back in. For Tesla, the $300 level is an important support point. A reason for this is that $300 is a round number that investors usually see as important.
This level also lines up with previous highs on Tesla’s chart. This means it has acted as a strong support point in the past.
If Tesla’s stock falls below $300, the next support level will be around $265. This level is close to the top of the “cup and handle” pattern, and it could attract buyers if the price drops that far. For investors, support levels like these can be good opportunities to buy if they believe the stock will bounce back.
Potential Resistance Areas if Tesla’s Rally Continues
If Tesla’s stock keeps rising, the $400 level could be a significant resistance point. For Tesla, $400 is close to its all-time high in recent trading volumes. This basically means it is a level that could attract selling pressure as investors try to lock in their profits.
The $400 level also goes in line with a price prediction target calculated from the cup-and-handle pattern. This target suggests that, based on the chart pattern, Tesla’s stock could reach around $395–$400. If the stock hits this level and breaks above it, Tesla’s price might continue climbing.