Tesla Stock (TSLA) is down 6% this week, with shares falling 7% on Thursday alone. The stock has taken a huge hit, along with the rest of the market, after Trump’s tariff policy went live. Prior to the tariffs being put into action, 2025 was already a down year for Elon Musk’s EV giant. Year-to-date, TSLA is down over 36%, with few signs of rebounding. However, a sign has recently emerged in Tesla stock’s price chart, giving one analyst hope that a surge is coming.
Indeed, the company is set to see an Elliot Wave Pattern play out. Indeed, after reaching an all-time high in December, TSLA entered a downtrend for much of Q1. That was followed by a pattern with five distinct swings. The chart had seen an upward push selling pressure on the 200-day moving average (MA) to meet the relative strength index (RSI) that introduced a local top above the 50 threshold, according to recent analysis. Moreover, that should have traders looking out for a potential death cross.
Additionally, after falling below the 200-day moving average in early March, the stock has carved two troughs on the chart, potentially forming a double bottom pattern. The double bottom is a notorious sign among analysts of a bullish climb. An acceleration of Wednesday’s buying momentum could see the shares test overhead resistance around $289. Surpassing that resistance could swing TSLA shares even higher, inching towards the $360 and even $400 zone.
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Wedbush’s Dan Ives recently noted that TSLA will face increasing challenges amid the US stock market’s reaction to the Trump tariff plan. Specifically, Ives noted that both Musk’s “brand crisis” and economic policy created a “perfect storm” for the company. “Tesla is less exposed to tariffs than other US automakers,” Ives said. “The bigger worry, in our opinion, is Tesla’s success in China, as this key region is the linchpin to the future success of Tesla,” he added. With the growing tariffs against China and the brewing trade war, Tesla stock (TSLA) certainly still has obstacles ahead.
All-in-all, Tesla shares need to remain above the $225 price to reclaim the $400 milestone in 2025. Otherwise, the stock may risk falling back below $200.