Tesla Shares Fall Lower Again This Week
Tesla shares continue to plunge lower this week. The company has undergone a sharp shift in sentiment since the test of 1142.17 highs with shares having now dropped by over 30% since that latest peak, currently sitting on support at the 777.11 level.
News of Elon Musk’s purchase of Twitter saw CEO and founder Elon Musk selling around $5 billion worth of stock in order to fund the purchase. Stockholders have expressed fears of further such sales as well as the risk that Musk’s attention to Tesla will weaken once he runs Twitter. This comes at a time when tech stocks are among the hardest hit during the current sell off in risk assets as traders face tighter liquidity conditions amidst growing central bank tightening.
Tesla shares have come under fresh selling pressure this week amidst news that the carmaker is having to temporarily suspend output at its Shanghai factory. The plant has been hit by severe logistical issues in the wake of the fresh COVID lockdowns launched there recently. Looking ahead, these conditions look likely to keep output offline while Tesla works on the situation.
Technical Views
Tesla
The sell off in Tesla from the 1142.17 level has seen the market breaking down through several key support levels. Price is now sitting on support at the 777.11 level and, with both MACD and RSI bearish, the stock looks vulnerable to a further drop lower towards the 617.03 level next. To the topside, bulls need to get back above the 904 level near-term to alleviate bearishness.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.