Tesla Stock Tests Key Resistance Level As Former Top Executive Divests 1.14 Million Shares

Tesla (TSLA) is looking to make a move above a key resistance level after gaining more than 15% this week following first-quarter earnings. A federal regulatory filing Thursday shows that a former top executive has unloaded more than 1 million shares.

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Drew Baglino, who served as senior vice president of powertrain and energy at Tesla, sold 1.14 million TSLA shares for around $181.5 million, according to SEC filings Thursday. The “approximate date of sale” is listed as April 25. The nature of the sale is listed as “stock option exercise.”

Baglino announced on April 15 via a post on X, formerly Twitter, that he had decided to leave Tesla. He had been at the company for 18 years. His announcement came as Chief Executive Elon Musk decided to lay off more than 10% of its global workforce, in an effort to prepare for the “next phase of growth.”

In 2024, Baglino previously sold 10,500 TSLA shares on Feb. 29 as well as on April 1, according to the federal filing.

Tesla stock fell 1.3% to 167.94 during Friday’s market action. Meanwhile, the National Highway Traffic Safety Administration (NHTSA) on Friday closed its investigation into Tesla’s Autopilot system. The NHTSA also opened a new probe Friday into whether Tesla’s over-the-air software updates to Autopilot have been adequate.

On Tuesday, Tesla reported first-quarter earnings and revenue.

Tesla Stock Performance

On Thursday, Tesla stock jumped around 5% to 170.18. This followed Tesla stock gaining 12% to 162.13 on Wednesday, hitting an intraday high of 167.97. Meanwhile, TSLA stock on Monday fell 3.4% to 142.05, hitting a low of 138.80 intraday.

After rallying following an earnings miss, Tesla stock is now testing resistance at its 10-week moving average, according to MarketSurge analysis. Tesla has struggled to retake this level for much of 2024. Breaking decisively above resistance could be a positive signal. If Tesla stock fails to reclaim its 10-week line, that declining marker could continue to act as a ceiling to the stock price.

While Tesla shares are up more than 15% this week, the stock remains down around 3.3% in April.

Last week, Tesla stock dived 14% and undercut April 2023 lows.

Tesla stock ranks eighth in the 35-member IBD Auto Manufacturers industry group. The stock has a 35 Composite Rating out of a best-possible 99. Tesla stock also has a 20 Relative Strength Rating and a 63 EPS Rating.

Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.

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