Tesla Stocks are back in the green on Wednesday — and Elon Musk’s long national nightmare sell stock It might finally be in the rearview mirror. While Musk has been blamed for a stock drop lately, he probably would have fallen even if he hadn’t tweeted about a potential stock sale. Tesla Arrow that stretched. Now they can get back to trading the basics.
Tesla stock (Ticker: TSLA) closed 4.3% higher on Wednesday, even with the close
It closed down 0.8% and 0.7%, respectively. The jump comes after a cruel Monday and Tuesday for Tesla shareholders. Tesla stock gave up about $200 a share, or 16%, in the first two days of the week. With the decline it erased nearly $50 billion from Musk’s net worth.
musk He has only himself to blame. He conducted a survey about selling stocks in
Twitter (TWTR) – He was the co-factor. Musk said he would sell 10% of his holdings if his followers voted that way. They did. The resulting firestorm had bulls and bears wondering if it was a good or bad omen, and whether Musk was having tax problems or needed to pay off debts.
An Icon Warrior could have acted like an Icon Warrior. Musk’s Twitter activity has been the subject of investor scrutiny for years. Tesla did not respond to multiple requests for comment about a potential share sale.
A Wedbush analyst wrote: “A Twitter poll to sell 10% of his stock is another weird series that can only happen to one company and one CEO.” Dan Ives In Wednesday’s report. It’s a Tesla bull, rating the stock on Buy with a target price of $1,100. However, he expects more volatility related to the sale of Musk in the coming weeks, preferably if the CEO takes off “the bandage now… rather than continuing through the next year.”
Investors were supposed to expect volatility, no matter what Musk did. And despite Ives’ warning, Tesla’s stock should be less volatile in the coming weeks no matter what Musk does.
Tesla stock rose about 57% for the month ending last Friday, before a Twitter poll upset the apple cart. Technical measures, which traders are watching, showed that the stock went too far too quickly. The Relative Strength Index, one of these technical indicators, has reached around 100. The 50 level is neutral and the 70 level is a warning that the stock might be down – that a lot of upside is being reflected in the stock.
After the past two days, the RSI has slipped back to 57. It’s not too hot nor too cold.
Now Tesla stock can go back to basics, even if it’s not an announcement of what’s to come. Bulls believe Tesla is worth about $1,200 a share. Bears think that $400 per share is a stretch. How to increase capacity at the company’s new facilities in Texas and Berlin will be important to the stock in 2022. So will the performance of upcoming competition from automakers such as
Rivian Cars (Raven) and
Ford Motor (F). Both will offer electric trucks for sale in 2022.
Write to Al Root at [email protected]