Oh oh! $600 is a huge support level for the shares - if they crash through that who knows where they might end up!
There looks to be decent support at around $600 but there are huge supply issues from China and the Far East - how long will these continue and how much will they impact Tesla?
Even in these volatile markets there does seem to be some support for Tesla - who would have thought lol
There will come a time to buy Tesla (probably worth buying now for the longer term) but I think the market could have a lot more downside yet. This will drag companies such as Tesla down even further as they currently trade on a huge premium to other companies.
Tesla will bounce around, probably quite violently, until the whole coronavirus issue has been resoled which doesnt look like any time soon. Traders might be attracted to the shares but I would only ever consider a buy, or part buy, if there was a huge collapse which can often be the last flick of the market correction tail.
Stocks such as Tesla on huge ratings with limited, if any, short term profit visibility will be smashed the longer the market continues to fall. The problem is they have nothing to fall back on and issues in the Far East will at the very best impact their supply chain, at worst cause delays in the manufacture and sale of vehicles. How will this impact short term cashflow?
Whenever I go to look at the Tesla share price I never know what to expect lol The shares have nearly halved since their peak and I reckon there is more downside to come in the short term.
The chart is pretty irrelevant at the moment in these current market conditions. However, I dont think Tesla will bounce back straight away as this virus issue and problems in the far east must have put the company's business plan back many months? How is it impacting cashflow?