- Tesla stock dumps on Thursday as tech takes a bath.
- TSLA shares fell nearly 7% to close at $1,031.56.
- Tesla support at the short-term pivot remains at $980.
Update: Tesla just performed a red to green switch in early trading on Friday with the stock opening down 1%. Currently, the stock is trading up 0.6% at $1,037 as investors grapple with the latest hawkishness from Fed officials. The Nasdaq has performed a similiar red to green switch and is currently up 0.3%, while the S&P 500 and Dow remain in negative territory.
Tech stocks suffered some pretty steep falls on Thursday as more hawkish comments from central bankers put investors back into risk aversion mode. This is slightly surprising when the market had already priced in a March rate hike and appeared content with that. Indeed, yields actually fell on Thursday despite the hawkish commentary. This may have been a case of yet again the narrative being set to suit the outcome. The market had witnessed a pretty solid bounce in tech stocks so far this week. The Nasdaq remains just down over 1.5% after yesterday's steep fall and is down 5% for the year so far.
Tesla Stock Forecast
Tesla is nothing if not volatile, and a high beta stock is always going to see outsized returns. Shares of the EV king proved as much on Thursday as it more than doubled the Nasdaq's loss and closed near the low of the day. Retail investors had become nervous in advance with some stock splits in Nasdaq ETFs giving some unusual premarket indications. Both the ProShares UltraPro Short ETF (SQQQ) and the ProShares UltraPro ETF (TQQQ) underwent stock spits, which showed some large and incorrect moves across many of the investment portals yesterday. Markets were nervous to begin with, and the price action then added to this. Central Bankers were merely remaining consistent with recent hawkish commentary.
In other more interesting news, especially to fans of cryptocurrencies, Tesla began taking Dogecoin (DOGE) as a means of payment for several pieces of merchandise in its online store. Dogecoin was up nearly 6% on Thursday and is powering ahead by 14% on Friday. Whether or not this has to do with Tesla is unclear, but it must be a factor.
Tesla Stock Forecast
The chart is choppy and unclear, but we still hold with our $980 short-term pivot. This is the yearly low so far, and the last significant low in the recent downtrend started in late November 2021. Breaking $980 will see a move to $886 in our view, so it is a big level. Hold and the first target is the spike high from January 4 at $1,208 – this year's high so far.
Tesla (TSLA) chart, daily
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.