NEW YORK – Shares of electric vehicle maker Tesla Inc. (TSLA) finished a turbulent session on Thursday almost completely unchanged, masking a day of extreme volatility that has left investors on edge ahead of Monday’s trading.
Tesla closed the regular session at
0.11 (0.034%). This flat finish, however, tells a tale of two vastly different market sentiments. The stock opened with a massive gap up at
332.36**. But the optimism was short-lived, as sellers took control and slammed the stock down more than
317.78**. In a remarkable display of resilience, buyers then fought back, erasing the day’s losses and bringing the stock back to its breakeven point by the close.
The after-hours session brought a little more clarity, with the stock ticking up
322.70, giving a slight edge to the bulls heading into the weekend.
Outlook for Monday:
Thursday’s dramatic price action has created a critical battleground. The direction on Monday will likely be determined by which of the day’s powerful forces prevails.
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The Bullish Case (Market Up): The stock’s powerful recovery from the $318 low is a significant bullish signal. It demonstrates that there is strong demand and a base of buyers willing to defend the stock against sharp drops. If investors focus on this resilience and the positive after-hours tick, they may try to push the stock back towards the day’s highs near $332 on Monday.
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The Bearish Case (Market Down): The complete failure to hold the optimistic opening gap is a major red flag for bears. It indicates that significant selling pressure exists at higher prices. Bears will argue that the morning plunge is the true market sentiment and the recovery was merely temporary. They will be watching for any weakness on Monday to try and push the stock back down below the crucial $317.78 support level.
Given the almost perfect stalemate at the close, Monday’s opening is critical. Investors will be watching intently to see if the bulls can build on the late-day recovery or if the sellers who dominated the morning will reassert their control.
