Tesla Stock Price and Forecast: Is Elon Musk still selling TSLA?

Tesla suffers after a swift turnaround in market sentiment.
Likely caused by a delay to President Biden's Build Back Better plan.
EV stocks would benefit from the green stimulus in the plan.

Ivan Brian FXStreet

Our Tesla (TSLA) call remains on target, and Thursday's move merely heightened recent volatility. Wednesday saw the Fed relief rally, but this was swiftly dented on Thursday. A combination of Omicron fears and lack of potential stimulus saw equity investors rush for the sidelines. The UK recorded its highest ever covid infection rate as Omicron runs rampant in the country. So far hospitalizations have not matched earlier peaks, but data from South Africa is beginning to turn more worrying. Hospitalizations are surging after a lag. Omicron may be milder, but its huge transmisability means hospitalization rates are still eventually rising sharply.

Tesla (TSLA) stock news

Added to this was news that President Biden and Senator Manchin are miles away from agreement on President Biden's green stimuls plan, "Build Bank Better". This stimulus is badly needed to maintain strong economic growth and consumer spending. The plan will also benefit EV makers and other green stocks. TSLA understandably then fell sharply on Thursday. The stock ended down over 5% as the twin effects above were added to by more selling from CEO Elon Musk. Filings show Musk selling another $884 million worth of stock on Thursday.

Tesla (TSLA) chart, 15-minute

By our rough estimates, we had calculated that Elon Musk had sold over $12 billion now, but we bow to Refinitive's superior power. They have the Tesla CEO down for nearly $14 billion worth of sales since November 8. Elon Musk has sold 17.2 million shares in Tesla. He had tweeted about selling 10% of his holding. 10% of both his trust and stock options equates to 24.4 million shares. So there may yet be further sales to come.

Tesla (TSLA) stock forecast

Not too far now to hit our $910 target. Tesla has been volatile through this downtrend with some sharp pullbacks, but the recent trend since December has been capped by the 9-day moving average. Reaching $910 fills the Hertz gap and puts another gap at $843 in sight. That will see Tesla target the 100-day moving average, so we would like to see that hold. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain stuck in a downtrend but not as yet showing signs of being oversold.

TSLA 1-day chart

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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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