Tesla (TSLA.US) stock continues its freefall, dropping more than 7.0% during today's session and some analysts point out that this may be tax loss selling, other point to growing competition on the EV market while majority believes this is a result of loss of confidence in Elon Musk and his dedication for the company. Musk is blamed for focusing too much on Twitter, thus neglecting his responsibilities as CEO of Tesla. Also in order to finance the deal Mush was forced to sell billions of his own Tesla stock, which added fuel to the downside move. Nevertheless, after introducing a number of significant changes to the social media giant, which may be beneficial in the future, Musk announced that he is now looking for a new Twitter CEO to take over his duties, so this argument may soon lose its relevance.
Meanwhile Musk is blaming the sinking price partly on macroeconomic factors and FED aggressive tightening process. He criticized the US central bank for hiking interest rates when prices may already be declining and expressed hope that stock market sell-off will force policymakers to cut rates. Musk also believes that the recent plunge in Tesla stock might present a "buying opportunity."
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Tesla (TSLA.US) stock fell nearly 69.0% this year and is currently trading at the lowest level since September 2020. Price broke below the lower limit of the local wedge formation and if current sentiment prevails, support at $108.00 may be at risk. This level coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
