Stock of the Day: Tesla
24 October 2025
In today’s stock of the day, let’s take a look at Tesla, which delivered a dramatic technical performance following its earnings release on Wednesday. The company’s results were mixed — earnings per share came in below expectations, while revenue was slightly higher than forecasts. The overall sentiment, however, was negative, leading to a sharp 4% drop in pre-market trading on Thursday. Traders anticipated a weak session ahead, but the day turned out to be a remarkable example of market strength and buyer resilience.
From the technical point of view, Tesla’s chart presented a diamond formation, marked with blue lines — a structure often associated with trend reversals. Thursday’s session opened below the lower boundary of the diamond, which initially confirmed a bearish breakout and sparked concerns about a deeper selloff. However, what happened next completely flipped the sentiment. From the opening bell, buyers stepped in aggressively, pushing the price higher throughout the day. The area where this reversal began is highlighted with a yellow rectangle — a key moment showing the market’s reaction to oversold conditions.
By the end of the session, Tesla erased all intraday losses, climbing from –4% at the open to finish more than +2% higher for the day. This V-shaped reversal not only demonstrated the strength of buyer demand but also invalidated the diamond breakout, effectively creating a false breakout scenario. In technical terms, such a move is highly bullish. The return above the lower blue line cancels the previous bearish implications and activates a proper long-term buy signal. As long as Tesla remains above this line, sentiment stays positive, and a continuation toward recent highs looks increasingly likely.