Watch These Tesla Levels as Stock Soars Following Robotaxi Service Rollout

Tesla (TSLA) shares surged Monday after the EV maker launched its highly anticipated autonomous robotaxi vehicle service on Sunday in Austin, Texas.

While the rollout was limited, CEO Elon Musk has said in past interviews that the company plans to quickly expand to more cities and potentially hundreds of thousands of vehicles by the end of next year. Tesla bulls, such as Wedbush analyst Dan Ives, have pointed out that Tesla’s robotaxis and self-driving software have the potential to double the automaker’s market capitalization by the end of 2026. 

Tesla shares jumped more than 8% on Monday to around $349. The stock is still down about 14% since the start of the year, but it’s risen more than 60% from its early-April low, boosted in part by Musk’s decision to relinquish his role heading the Department of Government Efficiency and spend more time at his companies, including Tesla.

Below, we take a closer look at Tesla’s chart and use technical analysis to identify key price levels that investors will likely be watching.

Pennant Pattern Breakout

After a pullback to the 50- and 200-day moving averages, Tesla shares consolidated within a pennant pattern just above the closely watched indicators.

More recently, the stock broke out from the pennant on above-average volume in Monday’s trading session, setting the stage for a new leg higher. The move also coincided with a strong uptick in the relative strength index, indicating accelerating price momentum.

Let’s identify three key overhead areas on Tesla’s chart to watch if the shares continue to rally and also locate an important support level worth monitoring.

Key Overhead Areas to Watch

The first overhead area to watch sits around $365. This area, just 5% above Monday’s closing price, could provide resistance near last month’s prominent peak, which also aligns with the February countertrend high and twin peaks that formed on the chart last November.

A convincing close above this area could trigger a rally toward $430. The shares may face selling pressure in this location near a series of trading activity situated just below the stock’s record high set in mid-December last year. Interestingly, this area also sits in the same neighborhood as a projected upside target that takes Tesla’s price action from late April to late May and repositions it from this month’s pullback low.

Buying above this area could see the shares climb to around $489. This region on the chart would likely attract significant attention near the stock’s record high, which may be seen as a suitable location to lock in profits.

Important Support Level Worth Monitoring

If Tesla’s share price reverses course, it’s worth closely monitoring the $285 level. Investors could seek buying opportunities in this area near a horizontal line that links this month’s low with a range of corresponding trading activity on the chart stretching back to last November’s election-driven breakaway gap.

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