Tesla stock up nearly 7% in U.S. premarket trading

Tesla shares surged nearly 7% in premarket trading Monday following a Bloomberg report indicating that the incoming Trump administration plans to prioritize federal regulations for self-driving vehicles. This potential policy shift would mark a significant step in creating a national framework for autonomous driving technologies, benefiting companies like Tesla that are at the forefront of innovation in this space.

Musk has been a vocal supporter of Trumpâ€s return to the presidency and recently accepted a key role in the administration. He was appointed, alongside Vivek Ramaswamy, to lead the Department of Government Efficiency (DOGE), a newly created entity tasked with streamlining bureaucracy and reducing regulatory hurdles.

The timing of this development aligns with Teslaâ€s unveiling of new autonomous vehicle concepts, including the Cybercab and Robovan. Musk also announced plans to deploy unsupervised Full Self-Driving (FSD) technology in select Tesla models in California and Texas next year, signaling the companyâ€s rapid advancements in this field.

If a cohesive federal framework emerges, it could accelerate adoption of self-driving technology, further solidifying Teslaâ€s leadership position. Investors appear optimistic about Teslaâ€s potential to capitalize on these favorable regulatory winds, driving the stockâ€s strong premarket performance.

Tesla Stock Chart Analysis

The Tesla Inc. (NASDAQ: TSLA) chart displays a clear upward momentum starting on November 6, with the stock climbing sharply from the $260-$280 range to a peak of $358.63 on November 9. This rally coincided with news that Tesla might benefit from federal regulations prioritizing self-driving vehicle technology, as discussed earlier.

After reaching its high, Teslaâ€s stock experienced a pullback, indicating profit-taking by investors. The stock found support around $320 and has been consolidating near the $340 level in recent sessions, suggesting that traders are awaiting further catalysts for direction.

The Relative Strength Index (RSI) shows a recent dip from the overbought zone (above 70), now sitting at a neutral level near 54. This signals a balanced market, with neither strong bullish nor bearish momentum dominating.

In the near term, the $320-$322 level appears to be a key support area, while $358 represents resistance. A breakout above $358 could lead to further bullish momentum, potentially targeting $375 or higher. Conversely, a drop below $320 could lead to a test of the $300 psychological support.

Overall, Teslaâ€s current consolidation phase reflects a period of indecision. Investors may look to developments in regulatory policies or Teslaâ€s product updates to determine the next significant move.

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