Tesla Stock Ends Week on a Downtrend, After-Hours Trading Signals a Potentially Bearish Open for Monday

NEW YORK – Shares of Tesla Inc. (TSLA) finished the trading day and the week on a sour note, closing at

4.70 or 1.43%. The day was marked by significant volatility, and a continued slide in after-hours trading suggests investors may remain cautious heading into the new week.

The electric vehicle maker’s stock experienced a turbulent session on Friday. After opening at $324.51, shares briefly rallied to a high of $329.34 in the morning. However, the gains were short-lived as selling pressure mounted, pushing the stock to an intraday low of $317.50 in the early afternoon.

While the stock managed a partial recovery from its lows before the 4:00 pm closing bell, it failed to reclaim positive territory, closing well below the previous day’s close of $328.49.

Critically for the Monday outlook, the negative sentiment did not end with the regular session. In after-hours trading, Tesla shares continued to drift lower, last seen at $322.71, representing a further dip of 0.33%. This extended decline indicates that selling pressure persisted even after the market’s close, often a signal of continued bearishness.

Market Outlook for Monday:

Given the context from the day’s trading, the outlook for Monday’s open appears tilted to the downside. Key factors pointing to this conclusion are:

1. Negative Momentum: The stock closed significantly in the red after failing to sustain early gains, showing that sellers were in control for most of the session.

2. After-Hours Weakness: The continued price drop in post-market trading is a strong indicator that the negative sentiment is carrying over. Markets often open in the direction of the previous day’s after-hours trend in the absence of major weekend news.

3. Broader Context: The current price of $323.79 is substantially lower than its 52-week high of $488.54, suggesting the stock has been in a wider corrective phase.

Barring any unexpected positive company announcements or a significant shift in broader market sentiment over the weekend, traders should be prepared for the possibility of a lower open for Tesla on Monday morning as it looks to find a stable support level.