Turbulent days/weeks for Tesla and Elon Musk.
After Musk's tweet saying he planned on taking Tesla private for $420 (20% higher than the price at that time) spurred a major bull run the troubles began.
First of all he mentioned that the funding was secured...which it wasn't. Possible investor was a Saudi controlled investment company which seems to be backing off from Musk and invest in a competitor instead Lucid Motors. Second the SEC is starting an investigation into false price manipulation because of that. And as third the Board knew nothing about it which is a very concerning managing style.
These are not the only problems Tesla is facing.
-It also hasn't made a single annual profit since it was founded 15 years ago.
-Production is lagging behind.
-Multiple accidents with the Auto-Pilot (granted the driver still has to pay attention)
JPM is also adding fuel to the fire by lowering it's price target from $308 to $195 by December 2018.
As for the technical side looking at the weekly chart, MACD is looking for the "bearish" crossover. The 10-week RSI has plenty of room left to fall even further.
I suspect it might find some support around the level of $284.50. In the event of a clean break we're gonna retest the trend that was fromed in Februari '16. Managing to beat that trend JPM's target is definitely not out of reach with the signs of some real support around $180.
That pretty much sums it up!
Disclaimer: I'm not telling you what to do always cross reference with your own analysis. I'm not responsible for your loss!
After Musk's tweet saying he planned on taking Tesla private for $420 (20% higher than the price at that time) spurred a major bull run the troubles began.
First of all he mentioned that the funding was secured...which it wasn't. Possible investor was a Saudi controlled investment company which seems to be backing off from Musk and invest in a competitor instead Lucid Motors. Second the SEC is starting an investigation into false price manipulation because of that. And as third the Board knew nothing about it which is a very concerning managing style.
These are not the only problems Tesla is facing.
-It also hasn't made a single annual profit since it was founded 15 years ago.
-Production is lagging behind.
-Multiple accidents with the Auto-Pilot (granted the driver still has to pay attention)
JPM is also adding fuel to the fire by lowering it's price target from $308 to $195 by December 2018.
As for the technical side looking at the weekly chart, MACD is looking for the "bearish" crossover. The 10-week RSI has plenty of room left to fall even further.
I suspect it might find some support around the level of $284.50. In the event of a clean break we're gonna retest the trend that was fromed in Februari '16. Managing to beat that trend JPM's target is definitely not out of reach with the signs of some real support around $180.
That pretty much sums it up!
Disclaimer: I'm not telling you what to do always cross reference with your own analysis. I'm not responsible for your loss!