Tesla Shares Lower Again
Tesla shares are back under pressure this week. With tech stocks among the hardest hit during the current risk-off action, Elon Musk’s alt-energy and vehicle making company has seen further losses. Tesla shares are now down around 40% from the April highs. However, the big news for Tesla this week is that the company has lost its place on the S&P 500 ESG Index.
The index noted that Tesla’s scoring on environmental, social and governance standards had slipped below that of its peers. In particular, the index was not happy with the company’s working conditions and its handling of an enquiry into deaths and injuries linked to its driverless systems. Additionally, the index cited a lack of low-carbon strategy as well as codes of business conduct as informing its decision to remove Tesla.
Musk immediately hit out at the decision, criticising the ESG. In a tweet, Musk wrote: “ESG is a scam. It has been weaponised by phony social justice warriors”.
The rejection from the 1142.17 level has seen Tesla shares cascading down to the 699.92 level. This has been major support over the last three months an a break here will be a firmly bearish development, opening the way for a test of the 617.03 level next. With both MACD and RSI bearish, the near-term outlook remains skewed towards further losses unless bulls can reclaim the 777.11 handle.