- TSLA stock recovered on Friday to close up 3.7% at $902.94.
- Tesla stock has been under pressure from Musk selling the stock for Twitter deal.
- Reports surfaced of a club of billionaires urging Musk on for the TWTR deal.
Update: TSLA stock is having an up-and-down start to the regular trading session on Tuesday, quoting almost flat at the time of this update (14.45 GMT, 75 since the Wall Street open.) Positive news crossed the wires from Shanghai, as local authorities in the Chinese economic capital helped re-opened Tesla's giga-factory after covid citywide lockdowns, while a report on billionaires pitching to Elon Musk the Twitter acquisition also has supported TSLA stock. Most equity traders are positioning ahead of tomorrow's crucial Federal Reserve meeting, with a big interest rate hike already priced in but forward guidance from Jerome Powell and the FOMC very much expected for further hints on monetary policy. Tesla, like most tech stocks, is a risk-on asset that will need some kind of dovish message to return to bullish mode.
Prior Update: News just in from a Reuters report says that Tesla received help from Shanghai authorities to help Tesla reopen its Giga Shanghai factory. A letter seen by Reuters claimed to be from Tesla says that Shanghai authorities helped transport 6,000 workers to the factory and that authorities also helped to disinfect the plant. TSLA stock is trading at $906.45, up 0.5% in Tuesday's premarket.
Tesla (TSLA) stock recovered a decent bit of ground on Monday as the US equity indices staged a late recovery to move higher. The Nasdaq was the big winner closing up 1.7% but naturally, Tesla being high beta, outperformed that and settled nearly 4% higher. The stock remains well below recent levels but may be set for a comeback as sentiment reaches extremely bearish levels, meaning a countertrend rally could be set to unfold this week.
That is once we get through the Fed's interest rate decision.
However, with most participants either short or neutral we expect something of a positioning rally Tuesday and Wednesday as investors rebalance from overly bearish positions. Yes, the Fed will hike 50bps but the market has this well priced in. The risk-reward is for a less than hawkish commentary and a strong equity market rally. The bad news and overly hawkish commentary are expected. Anything even slightly more accomodating will see a rush back to equities.
Read more stock market research
Tech is one of the most beaten-down sectors so it will stand to have the strongest rally. Don't say you haven't been warned.
Tesla (TSLA) stock news: Billionaires pitching Twitter deal
Some interesting news over the weekend from an article in the Wall Street Journal. The paper reports that a group of billionaires has been urging Elon Musk to go ahead and purchase Twitter (TWTR). The Wall Street Journal reported cited a group including some former Paypal execs, of which Mr. Musk is one and Peter Thiel another one. It is not clear if this influenced Mr. Musk in any way and he does always appear to be very definite in his own views and motives.
Twitter (TWTR) stock news: Musk reducing margin loan financing?
TWTR stock also traded higher on Monday as it appears Elon Musk is in talks to reduce his collateral on the Twitter deal. It was revealed last week that Elon Musk had to put down a large stake of his Tesla holdings as collateral, but a Reuters report suggested he is in talks with Apollo Global Management (APO) and Ares Management (ARES) to reduce the margin loan element of his Twitter financing.
This should naturally help relieve the pressure on Tesla stock and was partly the reason for Monday's strong rally. Both Apollo and Ares are private equity firms.
Tesla (TSLA) stock forecast: Potential for short-term bounce
Very little of note to comment on here compared with last week. TSLA stock price remains in a medium-term downtrend but we have some potential for a short-term bounce. $975 is the key resistance.
Tesla (TSLA) stock chart, daily
Below is the 15-minute chart, showing more detail on a short-term basis. Witness the large volume gap from $920 to $975, so a move above $920 should then accelerate quickly to fill this gap.
Tesla (TSLA) stock chart, 15 minute
*The author is short Tesla.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD touches two-week high near 0.6350 after RBA meeting minutes
AUD/USD attracts buyers for the fifth straight day on Tuesday and climbs to a nearly two-week low near 0.6350 following the release of RBA minutes, which indicated that the May meeting would be an opportune time to reconsider reacting to potential risks. This, along with a positive risk tone, acts as a tailwind for the Aussie.
USD/JPY trades with positive bias above 143.00; upside potential seems limited
USD/JPY gains some positive traction on Tuesday and now seems to have snapped a three day losing streak to a multi-month low touched last week. The upbeat market mood undermines the safe-haven JPY and lends support amid a modest USD uptick.
Gold price holds steady above $3,200; remains close to all-time peak
Gold price trades above the $3,200 mark following the previous day's modest pullback from a fresh record high as the escalating US-China trade war continues to underpin the safe-haven bullion. Moreover, the Fed rate cut bets lend support to the XAU/USD.
US Homeland Security probes Anchorage digital bank amid Blackrock custody expansion
US Homeland Security’s “El Dorado Task Force” is investigating Anchorage Digital Bank for potential financial misconduct. Anchorage previously faced regulatory action for BSA/AML compliance failures.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.