Tesla’s bullish stock (TSLA) the price may have one more step to go down before the last buyer can show up with a little bit of interest.
At least that’s the message from Tesla’s stock chart.
“Tesla is now officially oversold,” said market technician and Fundstrat CEO. newton mark above Yahoo Finance Direct (video above). “I’m looking for a dip below $100 right before Tesla’s earnings report at the end of the month, and that’s when many of my own cycles start to show a bottoming opportunity. We can create a bottom. bottom and begin to recover in the spring.”
Tesla shares up 10% through 2023 after electric car maker shares fell 65% last year.
Analysts point to several factors behind the staggering drop in Tesla’s seemingly indestructible share price.
First, the risk of operational errors at Tesla increased when Elon Musk focus on the newest company in his portfolio, Twitter.
Second, concerns remain around Tesla’s production problems and sales speed in China amid the uncertain approach to COVID-19 policies.
And finally, compete in the electric vehicle space in the U.S. only strengthened this year — raising the risk of slowing growth for Tesla in 2023 and beyond.
Even as these concerns persist everywhere, others on the Street are starting to take an interest in Tesla stock in a similar way to Fundstrat’s Newton.
“We think the Q4 setup is improving,” Citi analyst Itay Michaeli wrote in a new note to clients. “The recent sell-off was driven by legitimately negative developments (December Chinese demand/market share) and other concerns that we don’t think Q4 results alone can solve. That said, we think the weakening sentiment also reflects a lack of visibility into key futures—demand for auto gross margin in 2023 (price vs. cost), delivery/production outlook, product tempo for new/refreshed vehicles, Q4 results (and March 1 Investment Date) can provide much-needed visibility ‘hands-on’ on these questions/topics and that alone can provide at least a temporary emotional boost.”
Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.
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