multiplication tesla stock (TSLAThe price may have one more move to the downside before buyers finally show up with a little enthusiasm.
At least that’s the message from Tesla’s stock chart.
“Tesla is now officially oversold,” said the market technician and general manager of Fundstrat. Mark Newton on me Yahoo Finance Live (Video above). “I’m looking at below $100 right before Tesla earns at the end of the month, and that’s when a lot of my cycles start to show an opportunity for a bottom. We can start to bottom and start to go higher in the spring.”
Tesla stock is up 10% so far in 2023 after shares of the EV maker 65% last year.
Analysts point to several factors behind the staggering drop in Tesla’s once seemingly indestructible share price.
First, the risk of operational errors has grown at Tesla like Elon Musk’s Focuses on the newest company in his portfolio, Twitter.
Second, there are still concerns about manufacturing issues and the pace of Tesla’s sales in China amid An Uncertain Approach to COVID-19 Policies.
Finally, Competition in the electric vehicle space in the US only this year — raising the risk of slower growth for Tesla in 2023 and beyond.
Even with those concerns still ubiquitous, others on the Street are starting to warm up to Tesla stock in a similar vein to Fundstrat’s Newton.
“We think our fourth-quarter setup is getting better,” Citi analyst Itai Michaeli wrote in a new note to clients. “The recent sell-off has been driven by legitimate negative developments (China Dec demand/market share) and other concerns that we don’t think Q4 results alone are likely to resolve. However, we believe the weaker sentiment also reflects a lack of clarity on the going forward. Ahead Key – 2023 Auto Gross Margin Bridge (Price vs. Costs), Delivery/Production Forecast, Product Cadence New/Updated Vehicles.So, Q4 results (and March 1st Investor Day) can provide the much needed insight/”grip by hand” on these questions/topics, and that alone could provide at least a temporary boost to feelings.”
Brian Suzy It is a comprehensive editor and Anchor at Yahoo Finance. Follow Suzy on Twitter @employee and on linkedin.
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