Why is TESLA going down today?
Is Tesla about to crash? How deep could the Tesla share prices fall?
Now it’s the time where I should say “I told you so” excerpt from my last Tesla update “Perhaps this is not a bad time to think about profit-taking”…
A lot of people are asking me why is Tesla going down so here are my assumptions, it all started on Wednesday (Feb 10) the shares of Tesla dropped in response to a Bloomberg report that came out one night before, which stated that the startup e-car rival Rivian is preparing for an IPO.
In yesterday’s trading session there was a violent discharge at the leading electric vehicle manufacturer.
The prices of the Tesla share fell by a whopping 8 percent.
Tesla has meanwhile left the upward trend. Neither the pivot low from late January nor the 50-day average could be held by the bulls they failed on every level.
On the chart below, we can see the first lower low in over half a year.
Numerous investors are currently panic selling and the rally seems to be over.
How deep could the Tesla share prices fall?
In my opinion, the discharge could continue.
It could even fall below the $575 (blue arrow), where the 61.8% Fibonacci retracement of the latest upward impulse is.
Of course, charting is not about clairvoyance, rather, it is about showing possible potential.
Investors should recognize the seriousness of the situation and not feel safe. Everything that goes up comes down.
Probably big Investors are also not liking Elon Musk’s billion-dollar investment in Bitcoin, in their eyes, he turned “the vehicle company into an instrument of speculation”.
In my opinion, that was one of the smartest moves he could make.
But only time will tell…
Anyway, if it gets even more bloody on the streets, I’ll definitely buy some Tesla shares. (no financial advice)