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Tesla on the Path to New Highs: Correction Before a Major high?

hello guys.

let's have a comprehensive analysis of Tesla
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Technical Analysis

Price Structure & Trend:

The monthly chart indicates a long-term uptrend within a broad ascending channel.
Tesla has recently faced resistance around $300 and is now in a corrective phase.
The expected correction may bring the price down to around $220-$250, where it could find strong support before continuing its bullish move. or it is possible to start an upward movement and form an ATH!

RSI & Divergence:

The RSI indicator previously showed a fake bearish divergence, meaning the price action remains strong despite earlier weakness signals.

Potential Higher Levels

If Tesla successfully follows the projected movement, a break above $575 could open the door to $700-$750, based on the channel extension and historical breakout patterns.
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Fundamental Analysis

Earnings & Growth:

Tesla's revenue growth remains strong despite market headwinds.
New factory expansions (Giga Texas, Giga Berlin) and production efficiency improvements contribute to long-term profitability.
The Cybertruck ramp-up and expansion in AI-driven automation could drive future stock value.

EV Market Outlook:

Tesla maintains a dominant position, but increasing competition from Chinese EV manufacturers and legacy automakers remains a challenge.
Recent price cuts have impacted margins but helped sustain high sales volume.

Macroeconomic Factors:
Interest rate decisions by the Federal Reserve could impact growth stocks like Tesla.
If rates stabilize or decrease in 2025, Tesla could see renewed investor interest, pushing the stock to new highs.
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Conclusion
The mid-term bearish retracement toward $250 aligns with healthy correction levels.
If Tesla holds above support and breaks $350, your $575 target is highly probable.
A break above $575 could lead to $700+ in the longer term, assuming positive earnings growth and stable macroeconomic conditions.

melikatrader94

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