Tesla, Inc. (TSLA) shares moved about 2.5% lower in early trading on Thursday after the company reported fourth quarter financial results. Revenue rose 44.3% to $3.29 billion – beating consensus estimates by $10 million – and net losses of $3.04 per share exceeded consensus estimates by eight cents per share. With a cash balance of $3.4 billion, the company announced that it would be slightly increasing its capex spending next year.

Of course, investors were most focused on the production of the Model 3 – a mass market car that could make or break the company. While the production run rate was just 2,500 vehicles per week by the end of the first quarter, the company anticipates that these production levels will increase to 5,000 per week by the end of the second quarter. Management also expressed confidence in Model Y and Semi model developments over the coming years. (See also: Tesla Earnings Could Reward Loyal Shareholders.)

Technical chart showing the performance of Tesla, Inc. (TSLA) stock

From a technical standpoint, the stock rose during the beginning of the year to around $360.00 before falling to the middle of its price channel. The relative strength index (RSI) has moderated to neutral levels at around 49.08, but the moving average convergence divergence (MACD) experienced a bearish crossover earlier this month that could be the sign of a longer-term downtrend in the stock over the coming weeks.

Traders should watch for a rebound from lower trendline resistance at around $330.00 to the upper end of its price channel at around $370.00. If the stock breaks down from these support levels, traders should watch for a move down to trendline support near its prior lows at around $300.00. A lot of the price action continues to be driven by speculation surrounding the Model 3 production target and the company's ability to deliver on its promises. (For more, see: Tesla Stock Poised To Rebound By March, Traders Say.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.