Tesla: Warning sign
How far could Tesla stock fall?
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In my last article, I wrote about a possible rally, but I also see a warning sign,
from a technical point of view, the situation at Tesla is increasingly gloomy.
The bulls couldn’t push the share price above $ 720, a real warning sign.
My possible price targets on the bottom are $ 575 and $ 525.
Should the stock fall below $ 500, all dams will break.
If it succeeds in rising above $ 650, the situation would ease again.
There would be a procyclical buy signal above $ 720, and the probability is quite high that Tesla will revert to an uptrend again.
In my article “Why is TESLA going down today?” I explained the reasons, for the first dip, but here are some more of my thoughts.
Although the company entered the market with e-cars early on and is also a leader in some areas, the competition will increase and become stronger over time.
That means the future for Tesla looks at least a little less bright than the bulls previously thought. This fact, in combination with the fact that the price of Tesla has increased more than eightfold in the last twelve months, provides a certain explosive factor.
More and more investors are slowly realizing what is already clear:
Tesla isn’t the only manufacturer of electric cars and won’t be able to secure a 50 or 80% market share.
Not much less would be necessary to justify a market value of $ 900 billion.
At times, Tesla was worth almost as much as all other Automobile manufacturers on our planet combined.
Even hardcore “Elon fanboys” and supporters from Tesla should also admit that this is a little exaggerated.
Other e-car manufacturers are not sleeping, VW is recently in the focus of investors, as their quarterly reports show the company may soon sell more electric cars than Tesla.
Incidentally, the same applies to some other car manufacturers.
They don’t sleep there either.
