Tesla shares tanked almost 5% to $966.41 on Monday, hitting the lowest levels in five days. The sell-off ensued as the broader Wall Street indices tumbled on fears over the spread of the Omicron covid variant and pre-Fed anxiety. The Fed is likely to deliver a hawkish decision on Wednesday, in a bid to combat elevated inflation. The Nasdaq Composite Index (NASDAQ) lost 1.40% of its value, prompting Tesla's stock price to lose the $1000 mark. Tesla shares are still holding above the key $1,000 level as we approach the final lap of the year. Tesla (TSLA) is up an impressive 44% so far this year in what has been the year of the mega tech names. Tesla has had to stop accepting orders for new Model S and Model x orders outside North America, according to electrek. Tesla is rumored to have a large backlog of orders. Demand obviously remains strong as more and more countries offer incentives for electric vehicle purchases.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

all this is beginning to sound increasingly alarmist fear not Goldman said. They estimate that this narrowing trend is set to continue and to stick with growth stocks into 2022. Tesla (TSLA) should see more benefits if that strategy is maintained, adding further to the large headache the stock gives value to investors. Price/earnings multiples are out the window with Tesla. It is pure momentum.

We are still forecasting Tesla to return to the gap at $910 before year-end. $1,000 held again on Friday but the level is seeing increasing bombardment. The more a level is test the weaker it becomes. We fear the next time it will go and that will signal a sharp move to $910. The stock is already well capped by the 9 and 21-day moving averages and only a break above $1063 wil change our bearish stance. 

$897 : Next Destination for Tesla

farhan fazal

Dec 14 2021

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