Tesla Inc. (NASDAQ:TSLA) has been in the spotlight recently, and not just because of its futuristic cars or CEO Elon Musk's tweets.

Despite a year of ups and downs, the stock is gearing up to form a Golden Cross — a bullish technical indicator that has traders buzzing about a potential turnaround.

Chart created using Benzinga Pro

Tesla Stock Has Been Treading Rocky Roads

Let's face it: Tesla's been on a bit of a rollercoaster. The stock has dropped 16.97% over the past year and is down 11.36% year-to-date.

Following its second-quarter 2024 earnings report released on July 23, Tesla's shares plunged 10.61% as the company missed earnings expectations with an adjusted EPS of 52 cents, falling short of the 62 cents estimate.

However, Tesla did post sales of $25.5 billion, beating the $24.726 billion consensus and showing a modest 2.3% increase from the same period last year.

Despite the mixed financial results and a forecast of lower vehicle volume growth for 2024 compared to 2023, Tesla's stock may be on the brink of something promising.

Read Also: Tesla Q2 Earnings Highlights: Revenue Beat, EPS Miss, Robotaxi Update, 2024 Growth Rate To Be 'Notably Lower' Than 2023

The Golden Cross: Tesla's Silver Lining

Here's where it gets interesting: Tesla is about to form a Golden Cross, where its 50-day simple moving average (SMA) of $204.08 is poised to cross above the 200-day SMA of $204.86.

Chart created using Benzinga Pro

For the uninitiated, this crossover is a classic sign of a bullish shift, signaling that momentum is finally swinging in Tesla's favor. As of now, Tesla's stock price stands at $224.06, comfortably above both key averages, further fueling the bullish sentiment.

Chart created using Benzinga Pro

But wait, there's more! The Moving Average Convergence Divergence (MACD) indicator is at 7.34, supporting a bullish outlook, while the Relative Strength Index (RSI) sits at 46.95 and treading downwards, indicating the stock is approaching oversold territory.

Even the Bollinger Bands point to potential gains, stretching from $178.07 to $282.08.

What's Next For Tesla?

As Tesla edges closer to this technical milestone, traders and investors alike should keep their eyes peeled. The formation of the Golden Cross could mark a pivotal moment for the car company.

While the short-term outlook might seem cloudy, Tesla's long-term potential is anything but bleak. As the stock gears up for this significant technical move, the electric future of Tesla may just be a little brighter.

• Tesla Introduces New $120 Detailing Kit For All Of Its Lineup But Cybertruck