Selling Tesla shares amid correction from local high

A technical correction is underway in Tesla shares, with prices consolidating after reaching a local high of $458.29 on December 5, 2025. Sellers appear to be getting into gear, while the market is on edge ahead of the upcoming Federal Reserve’s (Fed) meeting.

Bullish momentum is waning as quotes approach the middle Bollinger Band near $422.91. The Stochastic Indicator (%K=79, %D=74) is getting closer to overbought territory, supporting a pause or a pullback scenario. In tandem with the declining Chaikin Oscillator and falling trading volumes, this technical setup paints a picture of a short-term bearish correction.

Analysis of key levels shows that a further advance requires holding above the $449–$458 resistance zone. However, testing support levels seems more probable, with the nearest and most significant one at $422.90. These factors suggest that the correction will continue or, at the very least, that sideways movement is highly likely in the coming days.

Fundamental headwinds reinforce this outlook. According to a Morgan Stanley report, electric vehicle sales in North America are projected to decline next year. This coincides with an overall cooling of the EV market in key regions like Europe and the UK. Disappointing Cybertruck sales and the company’s strategic pivot toward artificial intelligence (AI) and robotics are viewed as long-term scenarios that may be factored into Tesla's elevated valuation. This leaves the stock exposed to a correction in the absence of near-term positive catalysts.

The following trading strategy may come into play:

Instead of buying Tesla shares, consider partial profit-taking on long positions. Enter the deal in the resistance area between $447 and $449 if trading is active enough. Place Take profit at $423. Set Stop loss at $465.

The forecast remains relevant from December 9 till December 16, 2025.