Wall Street Pulls Support from Tesla (NASDAQ:TSLA)

Wall Street Pulls Support from Tesla (NASDAQ:TSLA)

Wall Street Pulls Support from Tesla (NASDAQ:TSLA)


  • Key Indicators Turning Very Bearish

Tesla’s (NASDAQ:TSLA) CEO Elon Musk is on Twitter scolding news organizations for quoting analysts with a Bearish view of his struggling EV maker.

Of the 31 Analysts covering the stock, 10 say to sell, or 32%, meaning the Bears are coming out to feed..

Wall Street firms rarely tell clients to get rid of a stock,  less than 5% of recommendations are sells. “Hold” is the the Street’s polite way of expressing doubt.

The niceties have been abandoned when it comes to Tesla, where Elon Musk has fought a pitched and public fight with Bears over the M3, his attempt to put EVs into the driveways of mainstream consumers.

Short interest is 25% of the stock’s public float and Mr. Musk has repeatedly gone back to investment banks to seek billions of dollars after burning through cash at rates that have raised concern among a growing number of investors.

Tesla is a company that pushes the analysts to take really strong opinions. It is a name that trades a lot on sentiment, and that sentiment changes minute by minute.

The ride has been bumpy.

A spokesman for Tesla, declined to comment.

Tesla as fallen for a 5th day running Friday, as investors questioned whether production of M3 cars would be sustained. The stock has retreated nearly 10% MTD.

A clear break below some very minor support at 308.87 opens the way to 248.21 mid term.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 308.9 6 July 2018 -0.26 304.95 312.07 302 8,857,300
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Neutral (0.04) Neutral (-0.13) Neutral (0.04) Neutral (0.22)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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