- Tesla (TSLA) stock falls again on Friday, nearly 3%.
- Tesla (TSLA) has stalled after Elon Musk's share sale.
- Elon tweets again this time about Bernie Sanders.
Tesla (TSLA) shares fell once again on Friday as the hangover effect from CEO Elon Musk's share sale continued. Despite some attempts at a bounce, this is now the second consecutive day of losses for Tesla and with the stock already lower in Monday's premarket it could be on for an unwanted hatrick. The last time Tesla had three down days in a row was back in August when the stock was trading below $700. As we can see from the Tesla chart below the stock has lost nearly 20% already from the all-time high in November. This one as we know is volatile.
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Tesla graph, 15 minute
Tesla (TSLA) stock news
The stock is down again in Monday's premarket as CEO Elon Musk continues to sell stock in the company. This goes back to the tweet from last Friday week when Elon Musk promised to abide by the results of a Twitter poll he ran when he asked should he sell Tesla stock. The poll was positive and the CEO duly obliged. He has sold about $5 billion worth of stock up to last Friday and now further filings on Friday show more sales of approximately $1.2 billion. This brings the estimate of his total sales since the infamous tweet to nearly $7 billion. The tweeting continues over the weekend when Elon Musk replied to a Senator Bernie Sanders tweet in which the Vermont senator said "We must demand that the extremely wealthy pay their fair share. Period". Musk replied “I keep forgetting that you’re still alive.”.....“Want me to sell more stock, Bernie? Just say the word.” Also over the weekend Michael Bury of the Big Short fame, and who had earlier this year taken a bearish bet on Tesla said that Elon Musk didn't want cash he just wanted to sell shares, in relation to the twitter pool.
Tesla (TSLA) stock forecast
Tesla (TSLA) staged a near-perfect retracement to the 9-day moving average as we can see from the Tesla chart below. Then the move failed on Friday when it closed 3% lower. This retracement after the 12% was not unexpected and one we had been warning of. However, we also noted that Tesla (TSLA) stock remains bearish on a short-term basis below $1120. This is where the second price explosion began. $1000 and $910 are the other price explosion starting points and so also act as support. Again we can see how well Tesla trades technically as it retraced and stopped at the $1000 support on Wednesday. We expect a continuation pattern to emerge that of an inverse or upside flag and a breakout then lower to close the gap to $910. Markets love to fill gaps. That level might ten be enough to begin the year-end rally but we will reasses once or if Tesla gets back there.
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