• Tesla stock suffers a strong 4% fall on Monday.
  • The US announces an investigation into EV maker's autopilot function.
  • TSLA shares break a strong bullish trend as key levels go.

Tesla (TSLA) stock suffered badly on Monday with the stock closing at $686.17 for a drop of over 4%. In the process, Tesla broke some key levels, the most notable being the $697 triangle bottom and also the $700 psychological level. The catalyst was the announcement from the Nation Highway Traffic Safety Administration (NHTSA) that it will look into Tesla's autopilot system. Reuters reports that "U.S. auto safety regulators said Monday they had opened a formal safety probe into Tesla Inc's (TSLA) driver assistance system Autopilot after a series of crashes involving emergency vehicles."

The NHTSA said that since January 2018, there were 11 crashes where Tesla models "encountered first responder scenes and subsequently struck one or more vehicles involved with those scenes." The New York Times reports that the NHTSA could trigger a recall or demand additional safety features. The stock reacted badly, falling sharply straight from the opening bell and never recovering. 

 

Tesla key statistics

Market Cap $679 billion
Price/Earnings 373
Price/Sales 25
Price/Book 29
Enterprise Value $753 billion
Gross Margin 22%
Net Margin

6%

52-week high $900.40
52-week low $287
Average Wall Street Rating and Price Target Hold, $711

Tesla stock forecast

Monday's move saw Tesla stock break lower out of what had appeared to be a nice bullish continuation triangle. Now the move from late last week looks more like a false breakout. Tesla stock has at least remained in the uptrend channel, which has been in place since the middle of May. Monday's sell-off stopped at the bottom of the channel, $677, so that is the first support level. $680 is the point of control going back to nearly January, which makes it a strong support zone. The 200-day moving average at $662 will be the next support if that zone breaks, and below that support is at $620. 

Tesla just about remains bullish in the medium term time frame due to the fact it is still in the uptrend channel and it has not broken the last series of lows in the trend at $620. But short term, the trend is neutral with the 9-day and 21-day moving averages broken on Monday. Getting back above these levels is the first sign of recovery. Otherwise it is more chop and sideways trading. This type of market is extemely difficult to trade, so please use good risk management and stops. 

 

 

 


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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD Price Analysis: Bounces on Double Bottom, bullish reversal needs more filters

AUD/USD Price Analysis: Bounces on Double Bottom, bullish reversal needs more filters

The AUD/USD pair is going through a correction phase after facing barricades around 0.6920 in the New York session. The asset displayed some signs of reversal on Thursday after finding bids while testing two-week-old support at 0.6850.

AUD/USD News

USD/JPY inches towards 136.00 on higher-than-expected Unemployment data

USD/JPY inches towards 136.00 on higher-than-expected Unemployment data

The USD/JPY pair is aiming towards 136.00 as the Statistics Bureau of Japan has reported higher-than-expected Unemployment data. 

USD/JPY News

Gold Price Forecast: XAU/USD struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold Price Forecast: XAU/USD struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold Price (XAU/USD) holds onto the previous day’s bearish bias, despite taking rounds to the multi-day low surrounding $1,805 during Friday’s Asian session.

Gold News

One of the most iconic American rappers is bullish on Ethereum despite recent price slump

One of the most iconic American rappers is bullish on Ethereum despite recent price slump

Snoop Dogg and his son Champ Medici are one of the most prominent celebrities in the Ethereum NFT ecosystem. Dogg argues that the bear market is weeding out all the people who are not supposed to be in the space.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures