Aniket PujariTesla share price surged over 7% on Wednesday, marking its second consecutive session of gains amid a broader rally in the US stock market. Tesla shares ended 7.59% higher at $248.09. In the extended trading hours, Tesla shares advanced 1.98%.
The two-day rally in Tesla stock price comes after the billionaire Elon Musk-led electric-vehicle maker’s shares saw a 15% plunge on Monday. The stock was up 3.79% on Tuesday.
Tesla share price has declined by over 30% in the past month and is down 35% on a year-to-date (YTD) basis. The weakness in the EV giant’s stock follows disappointing sales figures and investor concerns that Chief Executive Elon Musk’s potential involvement in the Trump administration may be diverting his focus from the company.
In a Fox Business interview on Monday, Musk stated that he was managing his businesses “with great difficulty.”
On the technical front, analysts believe Tesla shares may see short-term volatility amid the recent fall.
“Tesla recently saw a buying climax and a failed breakout at $417, completing a 780-day rounding bottom. Long positions are now trapped, fueling a liquidation-driven downtrend. The stock is currently 22% below its 20-day EMA (Exponential Moving Average) and 31.07% below its 50-day EMA, signaling extreme downside momentum. While a bounce to the 10-day EMA at $268 or even the 20-day EMA at $295 is possible, the broader trend remains bearish,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.
With selling pressure accelerating, Tesla shares could test key weekly support at $182.82, a critical swing low. Traders should watch for short-term volatility amid a high-momentum decline, he added.
Starlink deal with Jio, Bharti Airtel
Tesla was in focus recently after Elon Musk’s satellite-based internet service Starlink announced a collaboration with India’s top telecom players.
Jio Platforms, owned by conglomerate Reliance Industries, announced on March 12 that it will offer Starlink solutions through its retail outlets and online storefronts. Jio will also establish a mechanism to support customer service installation and activation.
Meanwhile, Bharti Airtel on March 11, had announced that it had signed an agreement with SpaceX to bring high-speed satellite internet service Starlink to India.
According to Avinash Gorakshakar, Head of Research at Profitmart Securities, the two top telecom companies making similar announcements regarding collaboration with SpaceX means it is not an exclusive deal with any one company.
“As a result, the collaboration will be more beneficial for consumers and SpaceX, which will gain access to a large market, rather than for Reliance Industries,” said Gorakshakar.
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