The Share Price of TSLA Sharply Declined After the Release of the Report

<img src="https://images.unsplash.com/photo-1585011650347-c59dbef5a823?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDR8fHRlc2xhfGVufDB8fHx8MTcwNjE3MDA5M3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="The Share Price of TSLA Sharply Declined After the Release of the Report" /><p>Following the publication of Tesla&apos;s (ticker TSLA) financial results for the fourth quarter of 2023, the company&apos;s stock price dropped. The TSLA share price in pre-market trading today is around $195, compared to yesterday&apos;s closing price of over $207 (approximately -6%).</p><p>Reasons for disappointment:</p><p>→ Earnings per share fell short of expectations at $0.71, compared to the Wall Street consensus of $0.73 per share.</p><p>→ Quarterly revenue amounted to $25.167 billion, which also fell below the expected $25.640 billion.</p><p>→ Additionally, a decrease in profitability was reported, partly attributed to issues with the introduction of the Cybertruck.</p><p>→ Tesla also provided a cautious outlook for 2024, warning that the growth rate in car production volumes could be &quot;significantly lower&quot; than in 2023. This is primarily due to the focus on launching the next-generation vehicle at the Gigafactory in Texas.</p><figure><img src="https://fxopen.com/blog/en/content/images/2024/01/251–4-.png" alt="The Share Price of TSLA Sharply Declined After the Release of the Report" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2024/01/251–4-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2024/01/251–4-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2024/01/251–4-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2024/01/251–4-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>In October 2023, analysing the TSLA stock chart, <a href="https://fxopen.com/blog/en/oa-market-analysis-tsla-stock-price-breaks-2023-trend/">it was noted</a> that the price broke below the ascending trend. How does the situation look today?</p><p>→ The TSLA price failed to return to the ascending trend (shown in blue) of 2023.</p><p>→ The price continues to evolve within the descending trend (shown in red), the contours of which were noticeable as early as October.</p><p>After the release of this news, a bearish gap is likely to form at today&apos;s opening, and one should be prepared for:</p><p>→ Breaking the psychological level of $200 per share – this level may switch its role from support (noticeable in the price action on October 30-31) to resistance.</p><p>→ The TSLA share price dropping to the lower half of the descending channel. The median line of this channel will act as resistance.</p><p>→ Bears attempting to extend their success to bring the price down to the lower boundary of the channel (around $180).</p><p>Investor issues with TSLA stock have been evident for some time, as the price has been noticeably weaker than stock indices reaching peaks in December 2023 – January 2024. If the fundamental backdrop continues to be negative, it is possible that the red descending channel will shape the trajectory of TSLA&apos;s price in the first half of 2024.</p>