Tesla’s disastrous sales report on Tuesday, and traders’ aggressive selling of the stock in the months leading up to it, have the share price plunging to wards a critical level for investors. The electric-vehicle giant’s stock price has sunk more than 33% this year, making it the worst performer in the Nasdagq 100 Index and second worst in the S&P 500 Index.
The shares, which traded for around $400 as recently as January 2022, are now at $166and dropping. So, technical analysts are watching the key $150 level to gauge whether the shares will find the much-needed support. “Not only is that level where its low from last April comes in, but it is al- so where we find the bottom of an eight-month downward sloping trend channel,” said Matt Maley, chief market strategist at Miller Tabak+. “Therefore, whether it can hold the level or not is going to be extremely important for the stock over the coming days and weeks.
” Most of Tesla’s recent wipeout reflects concerns about flagging demand for EVs. The company’s dismal first-quarter delivery numbers missed even the lowest Wall Street estimate by a mile, only exacerbating those concerns as it posted its first year-over-year sales drop since the early days of the Covid pande- mic. The stock ended Tuesday down 4.9% on the news.
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