Watch These Tesla Levels as Stock Rises After Musk Says DOGE Role Will Diminish

Tesla (TSLA) shares jumped in extended trading on Tuesday as CEO Elon Musk’s comments during the EV maker’s earnings call overshadowed quarterly results that came in well below Wall Street expectations.

Musk told investors and analysts that, starting next month, he will be allocating far more of his time to Tesla and less to running the Department of Government Efficiency. The comments came after Tesla reported bigger-than-expected declines in revenue and profit, as the company’s automotive business slumped amid lower volumes and sagging average sales prices.

Tesla shares have faced heavy selling pressure in recent months over concerns that Musk’s active involvement in the Trump administration has hurt the company’s brand and sales. The stock is down 41% since the start of the year as of Tuesday’s close, significantly underperforming the S&P 500’s 10% drop over the same period. Tesla shares gained 5.4% to $250.80 in the after-hours session.

Below, we take a closer look at Tesla’s weekly chart and apply technical analysis to identify key post-earnings price levels that investors will likely be monitoring.

Pennant Pattern in Focus

Since breaking down from an ascending broadening formation last month, Tesla shares have consolidated within a pennant pattern ahead of the company’s quarterly results.

While trading volume eased last week, share turnover has generally increased since the stock found a local bottom in early March, indicating that larger market participants had positioned ahead of time for a significant post-earnings move. Indeed, the shares look set to pop on Wednesday’s open, setting the stage for a potential breakout above the month-long pennant pattern.

Let’s identify two key overhead areas that may come into play amid results-driven buying and also locate important support levels worth watching during possible profit-taking periods.

Key Overhead Areas to Monitor

A decisive breakout from the pennant pattern could see Tesla shares climb to $315. Tactical traders who expected a post-earnings rally may look for profit-taking opportunities in this area near the high of a prominent countertrend rally that formed on the chart in August 2022.

The next overhead area to track sits around $384. This level on the chart may provide overhead selling pressure near a brief period of consolidation below the stock’s December high, with the area also lining up with the April 2022 peak.

Crucial Support Levels Worth Watching

A breakdown below the pennant pattern could initially trigger selling down to $206. The shares may encounter support in this region near last February’s countertrend swing high and range of corresponding price action on the chart between June and September.

Finally, selling below this level could see Tesla shares revisit lower support around $170. Investors may seek entry points in this location near a period of sideways drift that developed on the chart throughout most of May and June last year.

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