- Tesla stock underperforms strongly on Thursday as continued profit-taking strikes blow.
- Equity markets remain nervous as VIX inches up again on Thursday and indices lose ground.
- TSLA also feels pressure from more sales by CEO Elon Musk.
UPDATE: TSLA shares broke below $1,000 in the early part of Friday's session. This was in contrast to the S&P 500, which briefly broke above its mid-November high. Rivian (RIVN) was also down, while Lucid Group (LCID) jumped 4%. Tesla stock may find support at the December 6 low of $950.
Tesla (TSLA) shares lost a lot of ground on Thursday as investors cashed in recent gains ahead of the year end. TSLA has to be included in practically all indices, passive and active funds, and the temptation to book some strong profits ahead of the new year is just too tempting. Added to this is the strong retail investor base who will also be much more inclined to sell out before the holiday season, and the stock has been coming under heavy selling pressure. Call options have been a strong feature of the rise in Tesla this year, especially the last six months. Call option volumes have been steadily decreasing.
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Tesla (TSLA) stock chart, 15-minute
As we can see from the chart above, December has not been kind to Tesla stock so far, and we see this continuing.
Tesla (TSLA) stock news
Added to profit-taking and Elon Musk selling stock was news yesterday that the National Highway Traffic Safety Administration (NHTSA) is scrutinizing a feature in some Tesla versions that allow users to play video games in the car. Obviously, this would be a distraction to the driver. We are assuming it is a passenger feature but nonetheless still distracting. Elon Musk sold another $963 million worth of Tesla this week, and Cathie Wood of ARK is still selling small amounts.
Tesla (TSLA) stock forecast
Somehow $1,000 is still holding in there as support, but surely today is the day when that will finally break. Then it is a pretty clear path in terms of support straight to $910. $1,000 is psychological, but it has been tested quite a few times and the more a level is tested the weaker it becomes. Tesla is putting in a series of lower highs and knocking on the door of $1,000 each time. So the bounce from $1,000 can be said to be weaker each time. We also have a falling Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) confirming the price action.
Tesla (TSLA) stock chart, daily
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