Tesla shares plummet to lowest levels since November 2020
Buzz Update Tesla shares plummet to lowest levels since November 2020
Shares of Tesla (TSLA) are falling today, hitting lows not seen since November 2020, as continued weakness takes its toll on Tesla bulls.
Tesla is down almost 3% in midday trade, dipping below $177 shortly after the opening bell. For the week, the share is down more than 9% – and 50% since the start of the year.
The weakness in Tesla shares follows news this week that Elon Musk has identified someone as a potential successor for his role as Tesla CEO. The revelation emerged during a lawsuit over the $55 billion salary package Musk awarded him in 2018.
Musk’s further disclosures of additional Tesla stock sales last week rattled investors, as Musk continued to raise funds for his purchase of Twitter, which is now seen by analysts as a distraction for Musk at best. , and at worst as a bigger financial mistake.
News of Musk’s Tesla stock sale last week, now bringing his total shares sold since the announcement of the Twitter deal to buy to nearly $19 billion, prompted the analyst to Wedbush Dan Ives to throw in the towel on the stock, removing it from the company’s “best ideas” list. , and reducing its target from $300 to $250.
Tesla’s stock performance has also been hurt recently by factors such as a potential slowdown in China, which Musk says could be in the midst of a downturn, as well as concerns about weakening demand in the states. United States, as well as larger macroeconomic concerns about the global economy. New competition from traditional automakers such as Volkswagen, GM and Ford threatens Tesla’s strong lead in electric vehicles in the United States and Europe.
Turning to today, beyond the fundamentals, it is also possible for the technical sell-off to affect stocks. Barron’s reports technicians like John Roque of 22V Research advise to “sell any rally to $200”, and Katie Stockton of Fairlead Research warns that the stock must reach $207 “to avoid a confirmed breakdown that would put the next support near of $180”.
The deadline for Tesla to hit Stockton’s $207 mark was today, and Tesla shares have already fallen below its $180 support level.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.