Tesla (TSLA) Stock Price and Forecast: Bearish Bank of America and bullish Piper Sandler slug it out

Tesla stock cracks $1,000 as markets tumble.
TSLA shares approach key support at $980.
S&P 500 closes under its 100-day moving average as NASDAQ corrects.

Ivan Brian FXStreet

Tesla (TSLA) succumbed to relentless selling pressure across the board on Wednesday as equity markets continue their nervous start to the year. Surging yields and oil prices have not helped, and the added surge in UK inflation will have stoked further investor concerns. Tesla is a high beta stock, so the added volatility that brings meant that it was always going to be in for a tough session on Wednesday. However, things started out somewhat benignly, and it was only toward the end of the day that markets turned aggressively negative. This helped push Tesla below $1,000 and on to close at $995.65 for a loss of 3.4%.

Tesla Stock News

Tesla is facing a few headwinds as investors look with laser focus at their high growth names and ditch many of them. Cathie Wood of ARK Invest has been selling Tesla for some time now. In fact, Tesla is no longer the top name in the ARK Next Generation Internet ETF (ARKW). Coinbase (COIN) has taken over as the top holding, while Tesla slips to number two.

Elon Musk also sold a hefty chunk of stock, and now Bank of America has stuck the knife in with its latest note. “We think 2022 marks the start of commercialization for electric vehicles, with many start-up EV automakers launching/ramping new product and many incumbent automakers also beginning their product launch onslaught,” BAC said. Bank of America noted that it sees Tesla having less market share than traditional automakers as soon as 2024, with Tesla's EV market share in the US falling from 69% to 19%. This would be a rather alarming prospect for investors.

However, there is always a buyer to match every seller, and lo and behold, here comes Piper Sandler riding over the hill with a bullish forecast of 1.5 million deliveries this year. Piper Sandler sees the new factories in Texas and Berlin keeping up with strong global demand and sees margins also growing. Piper hands a $1,300 price target to Tesla.

Tesla Stock Forecast

We have identified $980 as the key level and pivot. Above is bullish, and below is bearish. It's as simple as that.

Already the stock looks more bearish in the short term with a lower high and lower low. Breaking $980 confirms the lower high and opens the door for a move to $886 and $843. Declining Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are also factors adding to the bearish tilt.

Tesla (TSLA) chart, daily

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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