Tesla Inc. (NASDAQ:TSLA) is trading at around $663.90 at press time. The price is a drop of 42% from the highs it hit at the end of March. Within a month, the stock has shed at least 33%, and more weakness is expected.
Tesla seemed to have countered the macro-economic turmoil better than peers as it hit above $1,150 in March. The concerns are now on Tesla, with persistent supply chain bottlenecks weighing on the stock. Morgan Stanley has since issued a note saying that Tesla will not meet delivery estimates for the second quarter.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Tesla’s Shanghai factory is not spared either by Covid-19. Covid-19 outbreaks have led to several production disruptions at the facility, and this has weighed on the stock.
Besides the macro-economic turmoil, Tesla seems to be hit by the actions of CEO Elon Musk. The stock weakness has been heightened by the potential Twitter acquisition. Investors grew concerned over how Musk will finance the $44 billion deal. As if that’s not enough, Musk called ESG investing a “scam,” which hurt the stock sentiment. The spat followed the exclusion of Tesla from the S&P 500 ESG index.
Tesla eyes $600 support as stock weakness continues
On the weekly chart, Tesla’s established support is at around $600. The stock is bearish at $663 and could proceed lower as sentiment remains weak. An RSI reading of 35 suggests the stock is entering the oversold region. Investors will be keen on $600 for any potential rebound.
Summary
Tesla is bearish and could drop to $600. Company-specific challenges and industry are to blame for the stock fall. Watch the stock’s reaction at the $600 support.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Capital.com, simple, easy to use and regulated. Register here >
*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
Source: https://invezz.com/news/2022/05/23/tesla-is-down-33-in-a-month-as-analysts-read-more-troubles-where-next/