Tesla Stock Price Eyes a Rebound as Retail Investors Buy the Dip Ahead of SpaceX IPO

Tesla stock price remains on edge today, April 8, down by 30% from its all-time high. Still, there is a possibility that the TSLA shares will rebound, possibly to the all-time high as retail investors buy the dip ahead of the SpaceX IPO later this year.

Tesla Stock May Rebound as Retail Investors Buy

Data compiled by Vanda Research noted that retail investors are slowly buying the dip, a sign that they expect it to bounce back in the near term. The report revealed that the stock has experienced $256 million in inflows in the last five days.

The buying happened even after the company announced its deliveries numbers that missed estimates. Its deliveries came in at 358,023, lower than the expected range of between 366k and 370k. 

Still, Tesla stock has some potential catalysts. For example, recent data show that its deliveries in some European countries have started to rise after slumping sharply last year. 

New Tesla registrations in Germany jumped by 315% to 9,252. The company has also seen more sales in some countries like the UK and Norway. At the same time, its China sales rose modestly despite the ongoing competition from companies like Nio and BYD. 

Tesla stock may also benefit from the US-Iran war, which entered a ceasefire today. This war pushed gasoline prices to $4 a barrel, the highest point in years. As a result, there is a scenario where the company experiences more sales as customers embrace EVs.

Another catalyst is that the top companies in the vehicle manufacturing industry have largely given up on EVs. This includes companies like GM, Ford, and Stellantis, which have made large write-downs.

Meanwhile, the TSLA stock price may recover as investors wait for the upcoming SpaceX IPO. Tesla has a minority stake in the company, thanks to an investment it made in xAI, which owns X and Grok. SpaceX and xAI merged earlier this year.

TSLA Stock Price Technical Analysis

The three-day chart shows that the Tesla share price has slumped in the past few months. It dropped from a high of $500 to the current $348. 

To a large extent, the chart points to more downside as it has crashed below the 50% Fibonacci Retracement level and the 50-day and 100-day moving averages.

However, the stock has formed a large falling wedge pattern whose two lines are nearing their confluence. That is a sign that a rebound is about to happen. It is also yet to get to the 61.8% retracement level.

Therefore, there is a possibility that the TSLA share price will rebound, potentially to the key resistance level at $500. A drop below the key support at $325, the 61.8% retracement will invalidate the bullish outlook.

The rebound will likely happen later this week when it publishes its financial results.