Tesla Rebounds After Earnings as Bulls Defend Key Support Zone

Tesla is seeing a deep retracement from the highs, pulled back nearly 30%, but when you look at the internal structure, this decline does not appear impulsive. Instead, it still looks like a corrective move.

The updated wave count suggests a possible seven-swing correction into the 50% to 61.8% retracement area of the rally from the April 2025 lows. This area is quite interesting and suggests more upside after the current rebound, which is already trying to recover outside of a corrective channel. That’s confirmation that bulls are coming back, exactly from our yellow box.

Tesla’s latest earnings report showed mixed results, with margins under pressure but revenue holding relatively stable, which helped stabilize sentiment and supported the rebound from key technical levels.

There is a chance for another leg higher, possibly into wave C of wave five within an ending diagonal, which is also visible on the weekly chart.

The post-earnings reaction indicates that investors may already be pricing in the weaker outlook, allowing technical factors to take control in the near term.

On the other hand, a drop below 260 with accelerating downside would suggest that the ending diagonal has already completed, which could lead to a much deeper correction, potentially toward 200 or even 150.