- Tesla stock falls on Friday as markets drop sharply.
- TSLA looks set for more losses on Monday.
- Tesla targets support at $266 on Monday.
Tesla (TSLA) stock continued to give up ground on Friday as markets reacted negatively to the latest series of rate hikes from the Federal Reserve. Risk assets have been falling sharply with it seems more to come. Inflation remains a problem, and a series of rate hikes is now likely to try and return the situation to a more acceptable level.
Tesla stock news
Overnight reports of a fire at Giga Berlin are hardly going to help recent sentiment. Various news sources are reporting on a fire at Tesla's factory in Berlin, and we are not sure who first broke the story. It certainly adds to headwinds if true. At present Tesla is being driven by macro factors as is most of the market. Tesla will struggle in such a rising rate environment, given its high growth potential. Not only do higher yields offer a viable alternative to stocks, but they hurt present value calculations for high future cash flows. Tesla is a high beta name, so any interim rally should see strong performance. There will be a recovery in stock prices shortly as nothing goes down in a straight line, but it appears that Monday is not going to see that reversal.
Tesla stock forecast
Tesla has now broken out of the sideways range with multiple failures at $314. This led to a retracement back to test support at $281. Friday saw a gap open below the level, and selling pressure then accelerated. Now $266 is likely to be tested on Monday, but there is no sign of recovery just yet. There is the likelihood of a break of $266 to wash out more sentiment before we get a small rally. That would then have resistance at $266 and $281. $250 to $207 is the next range zone lower down. Overall, the picture is bearish on all time horizons.
Tesla (TSLA) daily chart
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