From late April until mid-December, Tesla (TSLA) was an incredible stock. It went from being the 500th performer in the S&P 500 to one of the hottest of the year, gaining hundreds of percent. Over the past seven weeks, or so, it’s lost about 25% of its value (!!!!!!!!) with this week contributing a good chunk of those losses, even while the rest of the market rallies.
Indeed, since mid-December, it’s been a fairly brutal hammering lower.
Worse yet, I would suggest that TSLA is teetering on the ledge of vitally important Fibonacci levels which, if broken, open up a clean path to almost $300, a tremendous fall from grace.
What’s it all about then, eh? I think Elon’s mouth is cashing checks that Tesla is having trouble paying. I’ve referred to him as Co-President long before the light night comedians did, and in a way, he’s got even more of the spotlight than Trump does. This isn’t making him any friends among those who would have bought his cars, and for the public that he is exciting with his antics, let’s just say I think they’re more the F-150 type than a new Model X. Simply stated, he’s pissing a lot of people off, and they’re voting with their dollars.
I wouldn’t be surprised to see TSLA approach $300 in the months, or even weeks, ahead.
