TSLA Stock Price Falls Over 9% in Just 2 Days


The day before yesterday, trading in TSLA shares began at an opening price of USD 199.34; trading yesterday closed at a price of USD 180.51. The fall in TSLA shares led Musk to lose the title of the world’s richest man to Jeff Bezos.

The main driver of the decline in the price of TSLA shares was news:
→ about the temporary shutdown of the Giga Berlin plant in Germany after an arson set by a group claiming that the company led by Elon Musk is devouring “land, resources, people”;
→ that deliveries of electric cars from the Shanghai plant have dropped to their lowest level in more than a year — which may indicate fierce competition with Chinese manufacturers.

It also became known that Morgan Stanley analyst Adam Jonas is lowering his target price from USD 345 to USD 320 and predicting a decline in sales for FY24.

Technical analysis of the TSLA stock chart shows that:
→ The TSLA stock price is moving in a downward channel (shown in red), acting noticeably weaker than the broader market.
→ In March, the median line acted as resistance.
→ The price was unable to consolidate above the round level of USD 200 (in November last year it worked as support).

If the bearish momentum continues, TSLA price could reach the channel’s lower boundary around USD 170, renewing its 2024 low. Even lower is important support at USD 155, formed from a gap last January and tested in April.

On the other hand, the current decline may turn into a profitable opportunity in the long term.

As it became known this week, Cathie Wood’s ARK funds are increasing their long positions in TSLA shares. And respected analyst Daniel Ives said on CNBC that Tesla’s growth story isn’t dead and it’s just going through a “brutal transition” that could be linked to deteriorating communication due to the company replacing its chief financial officer last year.

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