Tesla Stock: Sell Signal After Non-Event (Technical Analysis-Downgrade)

Summary:

  • Tesla, Inc.’s Robotaxi plans were a non-event, leading to a Sell Signal and a downgrade to a strong Sell, with expectations of retesting $182.
  • CEO Elon Musk’s focus on X (formerly known as Twitter) and xAI suggests Tesla is a funding source for his other ventures, impacting stock performance.
  • Technical analysis shows a drop in the SID signal and underperformance against the Index, with poor Quant ratings in Growth and Valuation.
  • The market’s “buy the rumor, sell the news” play is evident, with TSLA’s price likely returning to pre-rumor levels.

A wooden electric car

Richard Drury

Tesla, Inc.’s (NASDAQ:TSLA) plans for the Robotaxi turned out to be a non-event and still on the drawing boards. As a result, there was a Sell Signal after the event, and we think TSLA


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in TSLA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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